This hourly to salary calculator estimates your annual and monthly salary by considering your hourly wage and the average number of hours worked per week. There is in depth information on how to determine this figure below the tool.
How does this hourly to salary calculator work?
The is a personal finance calculator designed to allow you forecast the annual, monthly or even weekly salary you will actually earn by taking account of the hourly rate (HR) and the number of working hours per week (WH).
The algorithm behind this hourly to salary calculator applies the formulas provided below:
- Annual salary (AS) = HR * WH * 52 weeks in a year
- Monthly salary (MS) = (AS)/12
- Weekly salary (WS) = HR * WH
This tool might come in handy in one of the following situations:
-when trying to keep a track of your overall earnings;
-when trying to determine the overall earnings within a year/month/week in order to define your budget;
-when trying to figure out your annual salary value that further on can help in evaluating your affordability to borrow some money either through a personal loan, or even a mortgage;
- when trying to figure out how much you can actually save regularly by considering your earnings;
- how much will you need to work per week in such a way to ensure a certain goal in annual salary;
Example of a calculation
Let’s assume an individual earns 25$/hour while he works an average of 40 hours/week. The following figures will result:
■ Annual salary = $52,000.00
■ Monthly salary = $4,333.33
■ Weekly salary = $1,000.00
3 Types of hourly rates
Depending on the employer’s policy and the labor law governing the employers within a certain state there are basically 3 types of rates:
- Regular rate which is the standard a defined within the law. Usually this hourly wage is paid for the first 8 hours worked per day/within the limit of 40 hours worked per week.
- Overtime rate which is usually one and a half applied to the regular rate and it is applied for hours worked over the legal limit of 8h/day or 40h/week.
- Double time which is twice the standard hourly wage applied in case the employer has this policy.