How to Convert Wage to Yearly Salary
If your wage is determined at an hourly rate, there are times it may be helpful to know what you make on an annual basis. For example, you may want to predict what tax bracket you fall into or need to inform an employer about your previous yearly salary. The process for converting your hourly wage into a yearly salary figure utilizes a fairly easy, straightforward formula.
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Instructions
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Converting Wage to Yearly Salary
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Multiply your hourly wage by the number of hours you work each day. For example, if you make $10 per hour and work 8 hours per day, your daily earnings are $80 ($10 x 8).
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Multiply your daily earnings by how many days are in a typical month (30). Using our example, you would multiply $80 x 30 to get a monthly earning total of $2,400.
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Multiply your monthly earnings by 12 months. Using our example, you would multiply $2,400 x 12 to get a yearly salary of $28,800.
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Tips & Warnings
If you are a full-time employee (40 hours/week), then you will work a total of 2,080 hours per year (40 hours x 52 weeks in the year). If this is the case, you can determine yearly salary more quickly by multiplying 2,080 hours times your hourly wage.
There are many online calculators available that can do the conversion for you. Do a Google search for "salary converter" or see "Resources" below if you are interested in using this tool.
The formula above determines your yearly base salary and does not take into account any overtime you may earn as an hourly employee. If you earn overtime, take the average overtime earnings that you make each month and multiply that number by 12 months. Then add that to your total yearly salary.
