How to Figure Yearly Income from Hourly Rate

When talking with Scott, a student who is doing some database work with me this semester, the topic of hourly pay versus salary pay came up. I mentioned a simple way to estimate yearly income from hourly rate on the fly.

Let’s say you are offered a job for $11/hour. If you assume you work 40 hours a week for 50 weeks a year you can simply double the hourly rate and that will be the yearly income in thousands, so $11/hour = $22,000/year.

I figured out this method years ago when I was job hunting in college so I could easily compare hourly and salary positions. Of course you’ll want to figure benefits and possible overtime into the final decision, but this gives you a quick idea.

This method works because 40 hours per week multiplied by 50 weeks makes for 2,000 working hours in a year (assuming two weeks of unpaid vacation). Multiplying by 2,000 is the same as multiplying by 2 then by 1,000 so that’s exactly what we do.

19 thoughts on “How to Figure Yearly Income from Hourly Rate”

  1. …and to take it a step further, to figure what your yearly wage is with paid vacation (which most of the people doing this calculation will be able to count on!), multiply the hourly wage by 2080.

  2. THANK YOU! I’ve begun job hunting after 29 years of working at 1 company. It’s great to find people like you, willing to share info., with the desperate and yet hopeful among us

  3. Yes – as Steve mentioned you will find most use the 2080 figure in this calculation. At least that is what was always used in my many years within Human Resources (recruiting, compensation, etc.). So stick with that one and you should be safe.

    Note: Julie – congratulations on “stepping out” after 29 years! That is a huge undertaking. If you need help with the interview stage jump over to my company website, and check out the FiredUp Interviewing audio CD – it will take you through the process step-by-step. Good Luck!! Oh yes, another quick tip for you: If you are building a resume use the top half of the page to list your accomplishments and the bottom half to list your actual employer/experience. Employers will read the top half first and are most interested in “what you can do for them”, so they like to see accomplishments up front.

  4. hi,
    i have a question, if i am offered a job with a base pay of $30,000.00 what will be my hourly rate?

  5. yeah, don’t call anyone stupid. wish someone would have told me a long time ago this simple formula — everybody i knew made themselves to be Einstein when calculating wages. Get this. I know someone who applied for a sales position where salary was $37,000.00. she got the interview. when asked about salary, she requested $12.00 per hour. did she get the job? probably not. why. cuz she’s stupid. let see. 12 plus 12 = 24. 18 plus 18 = 36. duhhhhhhhh.

  6. I started a job last week, worked one day before the pay period ended, so received a check for one day.

    My base salary is 32,000 – to me my hourly is 15.38 X 8 hours is 123.04 less taxes.

    My check was for 108.43 gross. ????? Can someone explain that to me?

    I asked the payroll person about it and with an attitude she said she just looked at how many days were in the month.

    Did I miss something?

  7. Sandy,

    The calculation is just a rule of thumb. In a salary position there are a bunch of other factors that will affect your hourly/daily rate.

    As an example, in my position I get paid twice a month, on the 15th and the last day. The paycheck is always the same amount, 1/24th of my annual salary, but if you think about it my daily rate for the 16th to 28th of February ends up being much higher than my daily rate from the 16th to 31st of May. (13 days vs. 16 days, this is actually a variation of over 23 percent!)

    Things get even stranger if you look at only work days, so I think you’ll have to expect a certain amount of variation unless you’re willing to spend some serious time crunching the numbers.

    Good luck with the new job!

  8. Great tip. What about if I work only 37.5 hours a week? Some companies have under 40 hours as a base. Say I earn $22 and hour, what would be my yearly salary working 37.5 a week? Please help. Thanks.

  9. It’s funny how you can call anyone stupid when there is no assurance that yearly salary is based on only 40 hours per week.
    Either be helpful or be quiet.

  10. just multiply how many hours you work in a normal week by how many works you will work in a year (usually 50 or 52 if you get paid vacations) So in your case Liz it would be 37.5 x 22.00 x 50 = 41,250.

  11. and truth be told, i cant believe people are having such a hard time figuring this relatively simple mathematical problem out. Its just multiplication people!

Leave a Reply

Your email address will not be published. Required fields are marked *