Yearly to Hourly Salary Conversion

On July 24, 2009, the federal minimum wage increases from $6.55 per hour to $7.25 per hour. If you know your annual salary, it is easy to calculate your hourly wage and find out how much more than minimum wage you are making per hour.

Days at Work in a Year

Rather than pore over the calendar to count the number of days you work in a year, estimate by taking the number of weeks you work (say, 50) and multiplying by five. To arrive at a final estimate, subtract for holidays and sick days.

Hours at Work in a Year

Take your estimate for how many days you work in a year and multiply by the number of hours you work each day. For example, if you work 240 days in a year and you work eight hours per day, you work a total of 1,920 hours in a single year.

Hourly Wage

To calculate your hourly wage, simply divide your yearly salary by the number of hours you work in a year. If your yearly salary is $30,000, for example, and you work 1,920 hours in a year, your hourly salary is $30,000 / 1,920, or $15.625.

Example #2

Question: Your new job pays you a yearly salary of $45,000. You estimate that you will work 2,480 hours over the course of the year. What is your hourly salary?

Answer: To calculate hourly salary, simply divide your yearly salary by the number of hours you work in a year. 45,000 / 2,480 = 18.15, so your hourly salary would be $18.15

Example #3

Question: Your new job pays you a minimum wage salary of $7.25 per hour. You estimate that you will work 260 days over the course of the year. Each day, you work for nine hours. What is your yearly salary?

Answer: First, you must calculate the number of hours you will work in the year by multiplying 260 by nine. Then, multiply by $7.25 to arrive at your yearly salary.

260 days/year x 9 hours/day = 2,340 hours/year

2,340 hours/year x $7.25/hour = $16,965/year.

Resources

• Online Calculator