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 different time frames. This guide will help you convert an annual salary into an hourly rate. If you are an employee who wants to determine their own wages without talking to human resources, this guide will help you as well.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Paper Pencil Calculator

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 hours work week.

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

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[neurobit]

on 5/5/2009 Here's an easier formula that I use all the time:Just divide the annual salary into 2080 (2080 being the amount of hours in a year with 40 hour weeks, so adjust as necessary), and you'll get the same result in fewer steps.20,000 / 2,080 = $9.615 / hour