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Salary Calculator – Convert Hourly to Annual Income
This salary calculator can be used to estimate your annual salary equivalent based on the wage or rate you are paid per hour. Follow the instructions below to convert hourly to annual income and determine your salary on a yearly basis.
Salary Calculator Instructions
Carefully follow these steps to convert your hourly wage into an annual income figure.
Step 1 – Hours per week
Enter the number of hours per week you typically work. This number will be an average. For example, if over the past four weeks you worked 30 hours in week one, 40 hours in week two, 50 hours in week three, and 40 hours during week four, your average weekly hours would be 40.
Step 2 – Time off
Enter the number of weeks per year you do not work. This includes both vacation and statutory holidays. For example, if you typically take two weeks off per year, you would enter the number 2 here.
Step 3 – Hourly wage
Enter the wage you are paid per hour. This figure can be an average, or whatever your current pay rate is. If you are currently paid $25 per hour, enter that in the box. If your wage changes over time and you know the average, enter that average figure instead.
Step 4 – Calculate results
Click the blue “Calculate” button to determine your estimated annual salary, which will be displayed in the grey box above. The illustrative currency in this calculator is US dollars, but the math will work the same in any currency, such as USD, CAD, GBP, EUR, JPY, and others.
Congratulations! You just converted your hourly wage to your yearly salary.
Math Behind the Salary Calculator
In case you want to convert hourly to annual income on your own, you can use the math that makes the calculator work.
Gross Annual Income = (# of hours worked per week) x (# of weeks worked per year) x (hourly wage)
Let’s calculate an example together. Sara works an average of 37 hours per week and takes two weeks off per year. Her average wage is $22 per hour. What is her estimated annual income?
First, calculate the number of hours per year Sara works. This is equal to 37 hours times 50 weeks per year (there are 52 weeks in a year, but she takes 2 weeks off). 37 x 50 = 1,850 hours.
Next, take the total hours worked in a year and multiply that by the average pay per hour. 1,850 x $22 = $40,700.
Gross vs Net Income
This salary calculator estimates total gross income, which is income before any deductions such as taxes, workers compensation, or other government and employer deductions. To determine your net income, you have to deduct these items from your gross annual salary. Note that deductions can vary widely by country, state, and employer. When you convert hourly to salary, it’s important to consider deductions as well.
Thank you for reading this guide on Hourly to Salary and using our salary calculator. CFI is a leading provider of Financial Analyst Training and Certification. To learn more about careers in finance, browse these additional resources:
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