Hourly to Yearly

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Hourly to Yearly

Hourly to yearly may sound more complicated than it is. If math is not your strong suit, don’t worry. Knowing hourly to yearly just takes a bit of patience and practice. 

What is the meaning of “hourly to yearly”?

Hourly to yearly is a term that is used when you are calculating how much an hourly employee would earn in an equivalent yearly salary. If you are a worker who is paid a specific wage per hour of work, doing this calculation can give you an idea of how much you make in a year. This is called an hourly to yearly conversion. But remember, doing this calculation does not change how much you make. It simply lets you know how much you make in a year if you tally your hourly wage. It is helpful to do hourly to yearly conversions if you want to compare your wages with that of other salaried positions or simply other roles in the business. 

How do you calculate hourly to yearly? 

To compute hourly to yearly, you will need to know two things: the hourly rate and the number of hours worked in a year. Multiply the two and you will get the hourly to yearly conversion. 

Let’s have an example. Let’s say an employee is paid $30 per hour and works 2,000 hours in a year. The equivalent annual wages will be $30 multiplied by 2,000 which is $60,000 a year pre-tax. 

Please note that this is the basic calculation. It does not account for overtime pay, bonuses, commissions, and any other adjustments. 

Is it possible to get an hourly salary from a yearly salary? 

If you are a salaried worker, it is still possible for you to know what your unadjusted hourly wage is. It just takes a few steps. You have to multiply the number of hours that you work per day by the number of days that you work in a year. Doing this will give the total number of hours that you work per year. Next, divide your annual salary by the number of hours that you work per year. The result will be the hourly wage. 

A bit confused with steps? Let’s see the following example. 

Jack’s annual salary is $24,000. He works 8 hours a day for 250 days a year. How do you get Jack’s hourly wage? 

                    1) Number of hours worked per day × Number of days worked in a year

                                      8 hours × 250 days= 2,000 hours

                     2) Annual Salary ÷ Number of hours worked per year

                                      $24,000 ÷ 2,000 hours = $12

Jack’s hourly wage is $12. 

Again, note that this basic calculation represents gross income before any taxes and deductions are subtracted. 

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