WorkCalculator4 parts · 1 min
Hourly rate to annual salary
Turn an hourly rate into a yearly salary from the hours in a week and the paid weeks in a year.
The answer
Annual salary is the hourly rate times hours per week times paid weeks per year. Monthly pay is that salary divided by 12.
How this works
Multiply the hourly rate by the weekly hours, then by the paid weeks. Forty hours times 52 weeks is 2,080 hours. Twenty-five dollars times 2,080 is $52,000 a year, and $52,000 divided by 12 is about $4,333.33 a month.
A month is not four weeks. Dividing the weekly pay by four understates the month. Unpaid weeks should be removed from the 52 before you multiply. The result is gross pay, before tax.
Examples
$25 an hour, 40 hours, 52 weeks
$52,000 a year, about $4,333.33 a month.
Common mistakes
- Using 2,000 hours when you meant 40 times 52.
- Comparing this gross year with a paycheck after tax.
Questions
Does overtime belong in the weeks?
No. This multiplies the base hourly rate by the scheduled hours. Add overtime on the overtime calculator after the base year is known.