When you earn an hourly wage for employment, it can be difficult to estimate your annual salary. However, if you work a routine week with the same number of hours each week, you can easily convert your hourly pay to an annual salary and figure out how much money you make in one year. If you do not work the same number of hours each week, you can use an average number of hours worked to figure your annual salary.
Determine how many hours you work in one week. If your hours are always the same each week, simply add up the hours you work and write them down. If your hours vary from week to week, you may not be able to figure your exact annual salary but you can get a close estimate. If some weeks you work 40 hours and other weeks you work 35 hours, figure your annual salary based on a 37 1/2-hour workweek or calculate annual salaries for both 40- and 35-hour workweeks.
Multiply your hourly wage by the number of hours you work in one week to determine your weekly salary. For example, if you make $12.00 per hour and you work 40 hours per week, your weekly salary is $480.00.
Figure how many weeks you work in a year. There are 52 weeks in one year. If you have unpaid vacation time, subtract this time from the 52-week year to find the number of weeks you work in one year.
Multiply your weekly salary by the number of weeks you work in a year. Using the same example, if your weekly salary is $480 and you work 51 weeks per year, your yearly salary is $24,480.
- Hourly Salaries: Hourly Wage Pay to Salary Conversion Calculator
- Internal Revenue Service. "Publication 525 (2019), Taxable and Nontaxable Income." Accessed Apr. 20, 2020.
- Internal Revenue Service. "Publication 516 (2019)," Page 3. Accessed Apr. 20, 2020.
- Department of Labor. "Fact Sheet #17G: Salary Basis Requirement and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA)." Accessed Apr. 20, 2020.
- The New York Times. "Overtime Rule Is but the Latest Obama Initiative to End in Texas Court." Accessed Apr. 20, 2020.
- Department of Labor. "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees," Page 7. Accessed Apr. 20, 2020.
- Department of Labor. "Final Rule: Overtime Update." Accessed Apr. 20, 2020.
- Internal Revenue Service. "401(k) Plans - Deferrals and Matching When Compensation Exceeds the Annual Limit." Accessed Apr. 20, 2020.
Kathryn Hatter is a veteran home-school educator, as well as an accomplished gardener, quilter, crocheter, cook, decorator and digital graphics creator. As a regular contributor to Natural News, many of Hatter's Internet publications focus on natural health and parenting. Hatter has also had publication on home improvement websites such as Redbeacon.