Annual Salary Calculator

Created by Luis Hoyos
Reviewed by Komal Rafay
Based on research by
Baye, M. β€œManagerial Economics and Business Strategyβ€œ (2009)
Last updated: Apr 24, 2023


If you ever wondered how much money you could make in a year, our annual salary calculator is the tool you need to put the power of financial planning in your hands.

No more guessing or estimating; enter your hourly wage, and our tool will calculate the yearly salary. You'll be able to see your projected annual income and better plan for your financial future.

You can also use this tool as a yearly salary to hourly wage calculator and convert from annual salary to hourly rate.

How to calculate your annual salary by hand?

To calculate the yearly salary from the hourly rate:

  1. Multiply the working hours per week by the working weeks per year;
  2. Multiply the previous result by the hourly wage; and
  3. That's it. The last result is the calculated annual salary.

We can summarize the previous procedure and convert from annual to yearly salary with the following formula:

Annualsalary=Workinghoursper weekΓ—Workingweeksper yearΓ—Hourlywage\scriptsize \begin{gather*}\rm Annual\\[-5px]\rm salary \end{gather*} = \begin{gather*}\rm Working\\[-5px]\rm hours\\[-5px]\rm per\ week \end{gather*} \times \begin{gather*}\rm Working\\[-5px]\rm weeks\\[-5px]\rm per\ year \end{gather*} \times \begin{gather*}\rm Hourly\\[-5px]\rm wage \end{gather*}

πŸ”Ž If you need to perform the opposite procedure and use the annual income to calculate the hourly rate, look at the FAQ section.

Let's look at some examples of how to calculate annual salaries with 40 weekly working hours and 52 annual working weeks:

  • For a wage of $17/hr, the yearly salary is $35,360:
    Annual salary = $17/hr Γ— 40 hrs/week Γ— 52 weeks/yr = $35,360/yr
  • For a wage of $20 per hour, the annual salary is $41,600:
    Annual salary = $20/hr Γ— 40 hrs/week Γ— 52 weeks/yr = $41,600/yr
  • For a wage of $42/hour, the annual salary is $87,360:
    Annual salary = $42/hr Γ— 40 hrs/week Γ— 52 weeks/yr = $87,360/yr
  • For a wage of $70/hr, the yearly salary is $145,600:
    Yearly salary = $70/hr Γ— 40 hrs/week Γ— 52 weeks/yr = $145,600/yr

To calculate the annual income and hourly wage after taxation, multiply them by one minus the tax rate expressed as a decimal:

Nethourlywage=GrosshourlywageΓ—(1βˆ’Taxrate)\scriptsize \begin{gather*}\rm Net\\[-5px]\rm hourly\\[-5px]\rm wage \end{gather*} = \begin{gather*}\rm Gross\\[-5px]\rm hourly\\[-5px]\rm wage \end{gather*} \times \left(1 - \begin{gather*}\rm Tax\\[-5px]\rm rate \end{gather*}\right)
Netannualsalary=GrossannualsalaryΓ—(1βˆ’Taxrate)\scriptsize \begin{gather*}\rm Net\\[-5px]\rm annual\\[-5px]\rm salary \end{gather*} = \begin{gather*}\rm Gross\\[-5px]\rm annual\\[-5px]\rm salary \end{gather*} \times \left(1 - \begin{gather*}\rm Tax\\[-5px]\rm rate \end{gather*}\right)

πŸ’‘ To convert a percentage into a decimal, divide it by 100. Learn more in our decimal to percent converter.

For example, applying a 12% tax rate to a wage of $20 per hour and its annual salary of $41,600/yr:

Nethourlywage=$20/hrΓ—(1βˆ’0.12)=$20/hrΓ—0.88=$17.6/hr\scriptsize \begin{split} \begin{gather*}\rm Net\\[-5px]\rm hourly\\[-5px]\rm wage \end{gather*} &= \mathrm{\$20/hr \times (1 - 0.12)} \\&= \mathrm{\$20/hr \times 0.88} \\ &= \mathrm{\$17.6/hr} \end{split}
Netannualsalary=$41,600/yrΓ—(1βˆ’0.12)=$41,600/hrΓ—0.88=$36,608/hr\scriptsize \begin{split} \begin{gather*}\rm Net\\[-5px]\rm annual\\[-5px]\rm salary \end{gather*} &= \mathrm{\$41,600/yr \times (1 - 0.12)} \\&= \mathrm{\$41,600/hr \times 0.88} \\ &= \mathrm{\$36,608/hr} \end{split}

FAQ

How to convert an annual salary to an hourly rate?

To convert an annual salary to an hourly rate:

  1. Divide the annual salary by the working weeks per year.
  2. Divide the previous result by the working hours per week.
  3. That's it. The last result is the hourly rate for that annual salary!

We can summarize all that procedure in the following formula:

Hourly wage = (Annual salary)Γ·(Hours per week Γ— Weeks per year)

How much is $17/hr in yearly salary?

$17/hr wage corresponds to a $35,360 yearly salary. For a 12% income tax, this corresponds to $31,116.80 after taxation.

What is the average annual salary in the U.S.?

According to the U.S. Bureau of Labor Statistics, the average annual salary in the U.S. is $58,260, corresponding to a $28.01 average hourly wage.

Luis Hoyos
Working hours per week
Working weeks per year
Hourly wage
$
Annual salary
$
Net salary
Tax
%
Net hourly wage
$
Net annual salary
$
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