Calculating your annual salary and converting it to an hourly rate is particularly beneficial when searching for a new job and determining minimum salary requirements. It can also be useful when estimating the pay you would lose if you plan to take some unpaid time off one week. Or maybe you're just curious about how much you actually make per hour in your current salaried position.
Whatever the reason for wanting to know your hourly rate, it is good to know how to make this simple calculation.
Calculate Your Weekly Rate
For a good example, say you earn a $75,000 annual salary. The calculation involved will be based on a 40 hour work week and 52 weeks worked in the year. The second example will use $45,000 for the annual salary and a 35 hour work week.
Assuming you work throughout the year, start by dividing your annual salary by 52, the number of weeks in a year. This will give you the amount you make per week.
For the first example above, $75,000 divided by 52 weeks in the year is $1442.31. In the second example, a $45,000 annual salary divided by 52 weeks per year is $865.38.
If you only work for a part of the year, be sure to adjust the number of weeks worked accordingly. For example, if a teacher at a charter school earned a $50,000 salary for working 36 weeks a year, 40 hours a week (including the time she spends grading papers), she would earn $1388.89 per week ($50,000/36) That would come out to $34.72 per hour ($1388.89/40).
Determine Your Hourly Rate
Take your weekly rate, and divide it by the number of hours you generally work per week.
For example, from the first example of $1442.31, divided by a 40 hour work week: $1442.31 divided by 40 hours per week is $36.06. In the second example, $865.38 divided by 35 hours per week is $24.73.
Check the Results
Just that quickly, you have figured out your hourly rate based upon your yearly salary. If you want to calculate your results even faster, you can always use an hourly wage calculator online to skip doing the math. You can also use a salary converter to check your math if you are unsure about your results.
In our first example, $75,000 annually translates to $36.06 per hour for a 40 hour work week. In the second example, $45,000 annually is $24.73 per hour for a 35 hour work week.
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