How to Add Hourly Wage to Get the Yearly Salary
When it comes to determining what your annual salary is, the most important tool you can use is your hourly rate. The calculation is fairly simple: multiply your hourly rate by the number of hours you work in a year. Of course, there are a few steps you can use to make this calculation even simpler.
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Instructions
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Determine your hourly rate. If you are an hourly employee already, this number should be listed on your paycheck. If you are a salaried employee, you can determine how much money you make per hour by dividing your gross pay by the number of hours reflected on your paycheck stub. For instance, if your stub reflects two weeks, divide your gross pay by 80 hours. Hours worked over or under the standard 40-hour workweek are not counted for salaried employees.
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Determine your overtime hourly rate. Most companies pay overtime at the rate of 1 ½ times your normal hourly rate. For instance, if you make $8 per hour during the regular work period, your overtime rate would be $12 per hour.
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Determine how many hours you work in one year. If you are a full-time employee, you will usually work 40 hours per week. You base salary will be your hourly rate times 2080 hours (40 hours per week x 52 weeks per year). If you regularly work overtime, you will need to multiply your overtime hourly rate to the number of overtime hours worked and add that total to your base salary to determine your annual salary. Salaried employees do not get to calculate overtime hours into their annual salary as they are generally not compensated for hours worked over 40.
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Add tips. If you are a tipped employee, you will need to add your tips for the year to your base salary to determine your annual salary.
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Tips & Warnings
Be careful to only use your gross pay figure from your paycheck stub. Your net pay has taxes and other expenses deducted and will reflect a lower annual salary.
