How to Calculate Yearly Wage

Budgeting with yearly income helps consumers stay out of financial troubles.

Determining how much money you make over the course of a year helps you budget appropriately. If you're paid an hourly rate and want to determine how much money you will make over the course of the year, you need to multiply the hourly rate by the number of hours worked per week. Then multiply the weekly rate by the number of weeks worked per year. A proper budget can go a long way in reducing debt and staying out of financial troubles.

Instructions

1. Determine your hourly pay. Your employer usually tells you this amount before you start working. For example, a person makes $20 an hour.

2. Multiply your hourly wage by the average number of hours worked per week. In the example, the person works eight hours a day for five days each week, for a total of 40 hours a week. Multiplying $20 an hour by 40 hours a week equals $800 a week.

3. Multiply the weekly paycheck by the number of weeks worked per year. In the example, the person works 50 weeks a year. So 50 weeks times $800 a week equals a yearly wage of $40,000 before taxes.

References

• CalcXML: Convert My Hourly Wage to an Equivalent Annual Salary
• The Salary Calculator: Hourly Wage