Annualizing a salary calculates a yearly equivalent of one’s income when the salary is paid on a less-than-annual basis, such as weekly, biweekly, monthly or bimonthly. Basic math operations compute an annualized figure that derives from a salary base for a differing pay period.
Multiply the hourly wage by the number of hours worked in an average workweek to find the weekly wage. For example, if you make $12 per hour and you work 40 hours per week, multiply $12 by 40 to get a weekly wage of $480.
Convert the weekly wage to a monthly wage. The multiple to convert weekly wages to monthly wages is 52 weeks divided by 12 months, or 4.333. In the example, a weekly wage of $480 multiplied by 4.333 results in a monthly wage of $2,079.84. Multiply the monthly wage by 12 to find the annualized salary; in the example, $2,979.84 multiplied by 12 results in an annualized salary of $24,958.08.
Convert a biweekly salary to a monthly wage. The multiple to convert biweekly wages to monthly wages is 26 biweekly pay periods divided by 12 months, or 2.166. For example, a biweekly wage of $2,500 multiplied by 2.166 results in a monthly wage of $5,415. Multiply the monthly wage by 12 to find the annualized salary; in the example, $5,415 multiplied by 12 results in an annualized salary of $64,980.
Convert a semi-monthly salary to a monthly salary by multiplying the regular semi-monthly wage by 2. For example, if the regular semi-monthly wage is $2,000, multiply 2,000 by 2 to equal a monthly wage of $4,000. Multiply the monthly wage by 12 to figure annual salary. Using the same example, multiplying 4,000 by 12 results in an annualized salary of $48,000.
Multiply a monthly wage by 12 to find an annualized salary. For example, a monthly wage of $3,500 multiplied by 12 results in an annualized salary of $42,000.
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Kathryn Hatter is a veteran home-school educator, as well as an accomplished gardener, quilter, crocheter, cook, decorator and digital graphics creator. As a regular contributor to Natural News, many of Hatter's Internet publications focus on natural health and parenting. Hatter has also had publication on home improvement websites such as Redbeacon.