Our calculator will convert your hourly pay to a weekly, monthly, and annual salary. If you know what you make per hour, it will show you how much you will make for these periods.
State and Federal regulations and laws are setting the minimum wages. Minimum hourly wages are intended to protect workers from unfair treatments and under-compensation for the work they do.
The Federal U.S. hourly minimum wage is set at $7.25 per hour but in many states, that minimum wage per hour is considerably higher.
It may seem simple to understand your salary. You receive your paycheck every few weeks and you’ll get your tax forms when the year comes to an end.
However, comparing your earnings to what others make in your professional field, or filling out, for example, a credit application, maybe a bit tricky, especially if you want to compare hourly salary to annual salary or if you want to determine benefits and commission.
In case you want to compare what you are currently making versus what’s being offered at a new job, or when you have an income that’s changing by the month, determining your annual, monthly, weekly, or hourly earnings could be more challenging than you’ve thought.
The table below is explaining how the results are determined. Just fill in your hourly pay and how many hours you work to learn how that relates to weekly, monthly, or annual earnings.
You can use this help to calculate your annual earnings if you know your hourly pay. You may be surprised at how much you earn on an annual basis.
How to use the Hourly Paycheck Calculator
- Enter the amount of your hourly wage
- Enter the total number of hours that you’re working per week.
- Our calculator shows you your weekly, monthly, and annual salary.
The minimum wage in your state in 2021
As said before, Federal and State laws are determining a minimum wage. The minimum wage must protect you from unfair under-compensation.
In the U.S., the minimum wage set by the federal government is $7.25 an hour. But you’ll see that in many states, the hourly minimum wage is much higher.
Let’s check the minimum wage for your state. You have the right to earn whichever minimum wage is highest, the local, state, or federal minimum wage.
|State Minimum Wage Rates|
|District of Columbia||$15.00 TBD|
How to calculate annual wage from hourly earnings
When you are earning hourly pay and you want to calculate how much your annual wages are, you need to know the number of hours you are working per week. Be sure that you’re only counting the hours that are clocked.
Do not include hours that are not on the clock, for example, lunch breaks or commuting time. Suppose you’re working 40 hours per week, but that you clock out each day for a 30-minute lunch break, you are paid for just 37.5 hours a week.
Then multiply the total number of weekly working hours by the hourly pay you get. This is also helpful when the issue of your desired salary comes up in employment contract negotiations.
When you will multiply that weekly total number by 52 (there are 52 weeks in a year), you will get your yearly pay. Suppose you’re making $20 per hour and you’re working 40 hours a week, your yearly income will be $20 x 40 x 52, is $41,600.
What does your work time include
In general, work time is understood the be including all the time that an employee is spending on performing the principal activities that come with the position.
Work hours may additionally include travel time (not regular commuting time), meal or other breaks that do not exceed 20 minutes, required education or training time, and time spent in meetings or at seminars.
|Annual earnings||= hourly earnings times
40 hours times 52 weeks
|Monthly earnings||= annual earnings divided by 12 months|
|Weekly earnings||= hourly earnings times 40 hrs.|
When you receive a commission for sales or a bonus on top of your base salary, calculating your yearly earning could be more challenging, as commissions usually are different per month. When applying to a job, it good to understand the difference between a cover letter and a resume.
The easiest and most logical method for calculating your earnings with the commission or a bonus is after that was determined. You need to add up your commission or bonus for each individual month to your base earnings if you want to determine your total annual income.
Your income and benefit
Another important element to bear in mind when considering your income position is valuating your benefits, especially if you’re thinking about accepting a new job offer. We often can see two common benefits that are key: retirement plans and health insurance.
Please be aware that you may be better off if you are accepting a slightly lower pay when your employer is covering the total of your health insurance cost. Just see how much your health insurance premiums are and subtract those costs from your current annual income to determine in what way the new offer relates to your current annual salary.
A good retirement plan is one more way of increasing your earnings. If an employer is willing to furnish your yearly contribution, you can add that amount to your annual salary. After all, you are earning it on top of your base salary.
When your employer is also willing to pay for more things (for example a computer, company car, or cell phone), determine the value of these perks and add up the total amount to your earnings, because you don’t have to pay for these costs by yourself any longer. You may be surprised how much more money you are will be making than you thought at first.
Salaries are payments received by employees for work and time contributed made by employers who, understandably will check your background and that’s okay as they want to protect the safety and security of their workers as well.
Salaries are predominantly paid in currency and consist only fractionally of services or goods compensation.
In general, salaries are paid after a specific amount of time such as weekly, bi-weekly, monthly, or semi-monthly, etc. In order to protect employees, a lot of countries have minimum wages enforced by local or central governments.
In the U.S. most people typically are working as full-time employees or freelancers. The salaries of full-time workers are usually based on an annual model though these days, finding a good job for a longer period of time might be quite a challenge.
Besides their base salaries, full-time workers usually enjoy more benefits such as unemployment tax, employer-paid healthcare insurance, retirement contributions, payroll taxes (part of Medicare and Social Security tax), bonuses, paid vacation leave, or other insurances.
If you would add up the value of all these benefits, you can see that they may be worth between 1.3 and 3 times base salaries. On the other hand, a full-time employee usually does not get paid for overtime work.
The most important benefits of working as a freelancer are flexibility, freedom, and a few tax benefits.
The income for freelancers is usually based on hourly, daily, or weekly payments, and because freelancers don’t have the benefits of full-time employees, their payment needs to be higher than the income equivalent for full-time workers, though in the supply-demand driven world we live in, the rates may be under pressure.
In general, we can see that freelancers are paid some 1 to 2 times the base cost of a comparable position, but it also frequently happens that they are forced to be happy with less generous compensation. On the other hand, we can also see freelancers who receive much higher compensation than standard employees if they possess highly demanded and specialized skills.
Last Updated on December 13, 2020.