# How to Calculate Annual Earnings From Hourly Wages

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Knowing exactly how much you are earning is important when you are filling out loan or credit card applications, or when you are comparing a new job offer with your current employment situation. Figuring out how much you earn in a year from your hourly wage can be determined using a simple two- or three-step calculation. All you need to know to figure out your annual earnings is your hourly pay rate and how many hours you work every day or week.

## Step 1

Calculate your daily pay. Multiply your hourly wage times the number of hours worked. If you are paid \$10 per hour, for example, and you work an 8-hour day, that is \$10 times 8 hours, or \$80 per day.

## Step 2

Calculate your weekly pay. Multiply your daily pay times the number of days you work per week. Assuming you work 8 hours a day 5 days a week, that means you multiply \$80 times 5 to get \$400 per week.

## Step 3

Calculate your annual earnings. Multiply your weekly pay times 52 to determine your annual pay. Using the above example, that means you multiply your weekly pay of \$400 times 52 to get annual earnings of \$20,800.

#### Tip

Calculate your annual earnings including overtime by including overtime pay into the weekly pay calculated in Step 2. If you average 5 hours per week of overtime, for example, that would mean adding 5 times \$15 (1.5 times usual hourly rate), or \$75 to your weekly total, bringing it to \$475. Multiplying \$475 times 52 per Step 3 gives you annual earnings of \$24,700 including overtime.

#### Tip

Determine your net take-home pay after taxes and deductions using a free web-based salary calculator such as The Salary Calculator.

#### Warning

The above calculations assume you are not taking any time off and are paid for holidays.