How to Calculate an Annual Salary Into an Hourly Rate

If you work in human resources, you will need to be ready to answer a variety of questions regarding paychecks. To answer many of these questions will need to know how to calculate wages from rates to salaries for various time frames, including the conversion of annual salaries into hourly rates.

Instructions

1. Determine the annual salary. This should be readily available from human resources. For our example we will use an annual salary of $20,000.

2. Divide the annual salary by 52 to determine your weekly pay. For our example, this would be $20,000 / 52 = $384.62.

3. Determine how many hours are worked in an average week. For our example, we will presume a normal 40-hour work week.

4. Divide the weekly pay by the hours worked per week. For our example this would be $384.62 / 40 = $9.62 per hour.

Tips & Warnings

• The amount determined in this guide is approximate, and it will not give you an exact hourly rate. The only way to get an exact amount is to determine exactly how much you made at the end of the year and divide by exactly how many hours you worked that year.