--- title: Why the Annual Value Does Not Match When Multiplying an Hourly Rate by 2080 description: Why you cannot multiple an hourly value by 2080; you must divide the annual value by 2080 --- [Skip to content](https://knowledge.balancedcomp.com/why-the-annual-value-does-not-match-when-multiplying-an-hourly-rate-by-2080#main-content) English Show submenu for translations ![MainBrand\_RGB\_Icon\_Red.jpg\]](https://knowledge.balancedcomp.com/hs-fs/hubfs/MainBrand_RGB_Icon_Red.jpg?width=40&height=40&name=MainBrand_RGB_Icon_Red.jpg) - [Position Grading Request](https://balancedcomp.com/regrade-request/) - [Annual Comp Report](https://compreport.balancedcomp.com/) - [Past FinComp Sessions](https://www.youtube.com/feed/playlists) Open main navigation Close main navigation - [Position Grading Request](https://balancedcomp.com/regrade-request/) - [Annual Comp Report](https://compreport.balancedcomp.com/) - [Past FinComp Sessions](https://www.youtube.com/feed/playlists) - English Show submenu for translations - balancedcomp.com balancedcomp.com How can we help? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://knowledge.balancedcomp.com/?hsLang=en) 2. [BalancedComp](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en) 3. [Reports](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#reports) # Why the Annual Value Does Not Match When Multiplying an Hourly Rate by 2080 - Only company administrators can access the Budget Builder tool in BalancedComp. You may notice that multiplying an hourly rate by 2,080 hours does not always return the expected annual salary. This behavior is expected and is the result of how compensation data is sourced and calculated within the system. Compensation data is always established using **annual salary values**, not hourly rates. Hourly rates are derived from these annual amounts for display purposes only. ### How Values Are Calculated 1. Salary survey data provides compensation figures as **annual values** 2. Midpoints and ranges are calculated using these annual figures 3. The hourly rate is calculated by dividing the annual value by **2,080 hours** 4. The resulting hourly rate is **rounded to two decimal places** ### Why the Values Do Not Match Hourly rates being rounded to two decimal places introduces a small variance. #### Example - Annual salary: $52,000 - Hourly rate calculation: $52,000 ÷ 2,080 = $25.00 In some cases, the division results in a value with more than two decimal places: - Annual salary: $50,000 - Hourly rate calculation: $50,000 ÷ 2,080 = $24.03846... → rounded to $24.04 When reversed: - $24.04 × 2,080 = $50,003.20 This difference is caused entirely by rounding. ### Important Notes - Annual salary is the **source of truth** - Hourly rates are **derived and rounded for display** - Reverse calculations from hourly to annual will not always be exact - [BalancedComp](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#main-content) - [Employees](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#employees) - [Positions](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#positions) - [Reports](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#reports) - [System Administration](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#system-administration) - [Budget Builder](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#budget-builder) - [Logging In](https://knowledge.balancedcomp.com/balancedcomp?hsLang=en#logging-in) - [BalancedResults](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#main-content) - [Goal Libraries](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#goal-libraries) - [Performance Reviews](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#performance-reviews) - [Approvals](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#approvals) - [Feedback Sessions](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#feedback-sessions) - [Settings](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#settings) - [Users](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#users) - [Troubleshooting](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#troubleshooting) - [Reports](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#reports) - [Templates](https://knowledge.balancedcomp.com/balancedresults?hsLang=en#templates) - [BalancedRewards](https://knowledge.balancedcomp.com/balancedrewards?hsLang=en#main-content) - [Settings](https://knowledge.balancedcomp.com/balancedrewards?hsLang=en#settings) - [Goal Libraries](https://knowledge.balancedcomp.com/balancedrewards?hsLang=en#goal-libraries) - [FAQ](https://knowledge.balancedcomp.com/balancedrewards?hsLang=en#faq) [![BalancedComp-Horizontal-Digital-White](https://knowledge.balancedcomp.com/hs-fs/hubfs/BalancedComp-Horizontal-Digital-White.png?width=200&height=58&name=BalancedComp-Horizontal-Digital-White.png "BalancedComp-Horizontal-Digital-White")](https://balancedcomp.com) P.O. 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