Annual Income Calculator
If you're wrestling with questions like "What does annual income mean?" or "How to find annual income?" - read the text, you'll find the answers there. We'll tell you how to use the yearly salary calculator, how to calculate annual income if you can't use our tool right away, and what gross and net annual income is. The tool can serve as an annual net income calculator or as a gross annual income calculator, depending on what you want.
How to use the annual income calculator?
This is how to calculate your annual income with our calculator:
Enter the hourly wage - how much money you earn per hour.
In the second field, input how many hours you work in a week. By default, we set the value to 40 hours (full time). If you work half-time, change it to 20. Otherwise, you can set it to any number you want.
A year usually has 52 weeks (occasionally it happens to have 53). If you get paid for holidays and work all year round, leave the default number in the third field of the yearly income calculator. If you work less - enter the number of weeks in a year for which you get paid.
That's it, the annual salary calculator has determined your yearly salary.
How to calculate annual income by hand?
The formula for the annual income is:
annual income = hourly wage * hours per week * weeks per year
If you want to do it without the yearly salary income calculator, substitute your numbers into this formula. If you're still confused about how to find annual income, have a look at the examples.
What is gross annual income? What is net annual income?
What does "annual income" mean? "Annual" means yearly, and "income" means profit, the money earned or received. Therefore, annual income means the amount of money obtained during a year.
Now, what is net annual income and gross annual income?
Gross means before taxes and net means after deducting taxes. What you receive in your bank account is net income.
To sum up - gross annual income is the amount of money your employer spent on you in a year. The annual net income is the yearly sum you received (after tax deduction).
Gross annual income calculator
Gross income is money before taxation. You can read more about it in the gross to net calculator.
The first four fields serve as a gross annual income calculator. To calculate gross annual income enter the gross hourly wage in the first field of this yearly salary calculator. The result in the fourth field will be your gross annual income.
If you're wondering how to calculate gross annual income by yourself - use the formula mentioned earlier; just remember to use your gross hourly wage.
Annual net income calculator
Some money from your salary goes to a pension savings account, insurance, and other taxes. Net income is the money after taxation.
There are two ways to determine your yearly net income:
Set the net hourly rate in the
net salarysection; or
Enter either your gross hourly wage into the first field or your gross annual income into the fourth field. Then enter the tax rate for both.
Remember to adjust the first two fields of the calculator as necessary. The annual net income calculator will display the result in the last field.
How to find annual income - examples
If you're still curious about how our yearly salary calculator works, here are two examples showing it in practice:
Susanne earns $15 per hour and works full time (40 hours per week), 52 weeks a year. To determine her annual income, multiply all the values:
15 * 40 * 52 = 31,200
Susanne's yearly salary equals $31,200.
Josh gets paid $500 weekly ($12.5 per hour at his full-time job, 40 hours per week). He takes 2 weeks of unpaid holiday per year. What's his annual income?
We know the weekly income, so, to determine the annual salary, we have to know how many weeks Josh works. We know there are 52 weeks in a year, out of which there are 2 where he doesn't get paid. We need to do the subtraction:
52 - 2 = 50. Now we'll multiply the number of weeks by Josh's weekly wage:
50 * 500 = 25,000
His annual income equals $25,000.
Of course, you can repeat these calculations with our annual salary calculator in no time!
Other ways to use the yearly salary calculator
The annual income calculator's main aim is to help you find your yearly salary. However, it can calculate the rest of the variables - it depends on which values you input first.
To calculate the hourly wage:
Reload the yearly income calculator if you've been using it already. Use the circular arrow below the calculator.
Fill in the last field of the annual salary calculator first.
Adjust the working hours and working weeks as needed.
You'll see the hourly wage in the first field of the annual income calculator.
How to calculate working hours
If you'd like to determine how many hours per week you'd have to work to earn a particular amount of money per year:
Reload the calculator. Clear the default number of working hours.
Set the number of weeks you'll work in a year.
Input your annual income and hourly wage.
To calculate working weeks:
Reload the calculator. Clear the default number of working weeks.
Set the working hours per week, annual income, and hourly wage.
You can also lock the variables you don't want to change and leave just the one you want to calculate. To do this, move your cursor to the right of the field you want to lock, click and select the padlock symbol. This way, you'll prevent the yearly income calculator from changing the locked values and make it compute the one you want.