Skip to Content

How To Calculate Yearly Salary

One of the first things I do when looking for a new job is to calculate the yearly salary that I would make. I also will want to know what that translates to monthly and after-taxes to figure out if that’s a livable wage.

If that’s something important to you as well, here is how to calculate your salary:

Cartoon chalkboard lesson of how to calculate your yearly salary

Yearly Salary

To calculate your annual income, multiply your hourly wage by the number of hours you work per week. Then, multiply that number by 52 weeks.

Example: 15 dollars per hour x 40 hours per week = $600. $600 x 52 weeks = $31,200.

If you work full-time at 40 hours per week, you can also simply multiply by 2080 hours. This is the average number of hours people work per year. 

Example: 15 dollars per hour x 2080 hours = $31,200.

How to calculate yearly salary

However, these calculations only give you an estimate. Your actual yearly salary will differ due to time off, holidays, overtime, etc.

Daily Salary

When calculating your daily salary, multiply your hourly wage by the number of hours you work per day. 

Example: 18 dollars per hour x 8 hours per day = $144 per day.

How to calculate daily salary

Weekly Salary

To calculate your weekly salary, multiply your hourly wage by the number of hours you work per week.

Example: 20 dollars per hour x 40 hours per week = $800 per week.

How to calculate weekly salary

Monthly Salary

In order to calculate your monthly salary, multiply your hourly wage by the number of hours you work per month. If you work full-time, this will usually be 160 hours.

Example: 15 dollars per hour x 160 hours per month = $2,400 per month.

How to calculate monthly salary

If starting with a yearly salary, you can divide that number by 12 months.

Example: $30,000 per year / 12 months = $2,500 per month.

Yearly Salary To Hourly

To calculate yearly salary to hourly, divide the amount of money you make per year by the total number of hours you work in a year. Again, this is only an estimate seeing as there are actually 2080 to 2096 work hours in a year.

Example: $60,000 a year is $28.85 an hour. Find this by dividing $60,000 by 2080 hours.

Another way to do this is by dividing the yearly salary by the number of weeks you work per year. Then, divide that amount by the number of hours worked per week.

Example: 45,000 dollars per year / 52 weeks = 865.38. $865.38 per week / 40 hours per week = 21.63. $45,000 per year is $21.63 per hour.

How to calculate hourly salary from yearly

After-Tax Salary

It would be great if we were able to keep all of the money from our paychecks; however, there are a variety of state and federal taxes withheld to support various government programs.

A quick and easy estimation I use is to anticipate paying about 30% of my salary in taxes, that would mean I get to keep 70%.

Example: $40,000 per year x .70 = $28,000 per year after taxes. 

The actual amount of taxes taken out will be less in my tax bracket; however, this over-estimation helps me mentally prepare for the blow.

For 2022, the tax rates are:

  • 37% for individual incomes over $539,900 ($647,850 for married couples filing jointly)
  • 35% for individual incomes over$215,950 ($431,900 for married couples filing jointly)
  • 32% for individual incomes over$170,050 ($340,100 for married couples filing jointly)
  • 24% for individual incomes over$89,075 ($178,150 for married couples filing jointly)
  • 22% for individual incomes over$41,775 ($83,550 for married couples filing jointly)
  • 12% for individual incomes over$10,275 ($20,550 for married couples filing jointly)

To get a more accurate estimate, try using the tax withholding estimator on the IRS website.