How to Easily Convert Your Hourly Wage to an Annual Salary or Vice Versa

When searching for jobs or just doing research for jobs, you will probably need to compare a position that is paid through an annual salary and one that is paid hourly. This technique will provide you with a quick and easy way to make the comparison.

Instructions

1. Get the hourly rate or the annual salary for the job you want to convert.

2. Convert an hourly wage to an annual salary by multiplying your hourly wage by 2,080. Why 2,080? Most hourly jobs pay you for 2,080 hours of work a year, including paid vacation weeks. That is 52 weeks at 40 hours a week. So $10 an hour will translate into 10 x 2080 = $20,800 a year and $15 an hour will translate into $31,200 a year. If, for some reason, your job does not offer paid time off, adjust the total hours accordingly to get the annual rate. A job with one week of unpaid leave, for example, will yield the equivalent of 2,040 hours a year while one with two weeks of unpaid leave will yield 2,000 paid hours.

3. If you want to break an annual salary down to an hourly rate, reverse the process. For an hourly position with paid time off, divide the annual salary by 2,080 to get the gross hourly wage.

Tips & Warnings

• Keep in mind that your gross wage or salary is not the same as take-home pay, which is what you will receive after withholding taxes and other deductions are backed out of your check.