How to Calculate the Hourly Wage of a Yearly Salary

Job offers may present your compensation as an annual salary or an hourly wage. If you have multiple job offers, you may need to convert a yearly salary to an hourly wage to determine the best compensation. To perform the conversion, you need to know your pretax salary, how many hours per week you work and how many weeks per year you work.

Things You'll Need

• Calculator

Instructions

1. Consult your employment contract to find your pretax salary.

2. Multiply the number of weeks per year you are paid by the number of hours per week you are paid. When calculating the hours worked by a full-time, salaried employer, the Bureau of Labor Statistics multiplies 52 weeks per year by 40 hours a week to get a total of 2,080 hours works.

3. Divide your annual salary by the number of hours worked per year to calculate your hourly wage. For example, if you earned $41,000 and worked 2,080 hours per year, you would divide $41,000 by 2,080 to find your hourly wage to be about $19.71.

References

• BLS: Occupational Employment and Wages Technical Note
• Hourly Salaries: Hourly Wage to Salary Conversion Calculator