Hourly to Annual Income Calculator
Convert your hourly rate into a projected yearly salary
How to Calculate Annual Income from an Hourly Rate
Understanding your total annual compensation is crucial for budgeting, applying for loans, or evaluating a new job offer. While an hourly wage tells you what you earn in 60 minutes, it doesn't account for the full scale of your yearly earnings. Here is the mathematical logic used to determine these figures.
The Basic Calculation Formula
To find your gross annual income (before taxes), the formula is straightforward:
Annual Income = Hourly Wage × Hours per Week × Weeks per Year
For a standard full-time employee working 40 hours a week for all 52 weeks of the year, the calculation is Hourly Wage × 2,080 (since 40 × 52 = 2,080).
Considering Unpaid Time Off
Many workers do not receive 52 weeks of paid work. If you take two weeks of unpaid vacation, you would calculate based on 50 weeks. Our calculator allows you to input "Unpaid Days Off" to provide a more accurate reflection of your take-home potential. We subtract the value of these unpaid days from the total annual projection.
Example Calculations
- Entry Level: At $15 per hour working 40 hours a week for 52 weeks, your annual income is $31,200.
- Mid-Career: At $35 per hour working 40 hours a week for 52 weeks, your annual income is $72,800.
- Part-Time: At $20 per hour working 20 hours a week for 50 weeks, your annual income is $20,000.
Gross vs. Net Income
It is important to remember that the results provided by this calculator represent your Gross Income. This is the amount you earn before federal and state taxes, Social Security, Medicare, and benefit deductions (like health insurance or 401k contributions) are removed from your paycheck. Your "Net Income" or "Take-Home Pay" will be lower than the calculated annual figure.