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How to Calculate an Annual Salary Into an Hourly Rate

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As a salaried employee, you may need to convert your income to an hourly wage to complete loan, mortgage or job applications. Or, you may just want to know how your annual salary breaks down by the hour. You must determine your total annual salary and the number of hours and weeks you work per year to calculate your hourly wage.

Annual Salary

Locate your annual salary. Your employer likely included the number on your work agreement or employment contract. If you got a raise or you can't find the number on your work documents, contact the human resources department to request your annual salary. Use your gross income -- salary before taxes are withdrawn -- to convert your wages to an hourly rate. You can also use your paychecks to determine your annual salary. The amount of your paycheck times the pay frequency equals your total annual salary. If you receive a bimonthly paycheck, multiply the wages on your check by 26 to determine your annual salary. If you receive a weekly or a monthly paycheck, multiply your wages by 52 or by 12, respectively. For example, if you receive $1,600 twice a month, multiply $1,600 by 26 to get your total salary.

$1600 X 26 = $41,600

Talk to the loan officer to determine if you should include commissions or tips as part of your salary.

Number of Work Weeks

Determine how many weeks you work during the year. Include holidays, sick days and vacation as part of your work week, unless you don't get paid for those days. For example, if you're a permanent, full-time employee and you work year round, your total number of work weeks is 52. As a seasonal or a part-time employee, you will work less than 52 weeks a year.

Total Number of Work Hours Per Year

Calculate the total number of hours you work each year. Multiply the number of hours you work each week by the number of weeks you work each year to determine your total hours. For example, if you work 40 hours a week for 52 weeks a year, then your total work hours equals 2,080.

40 X 52 = 2,080

Salary to Hourly Conversions

Divide your gross income by your total work hours to convert your salary to an hourly wage. For example, if your gross salary is $41,600 per year and you worked 2,080 during that time, then your hourly wage is $20.

$41,600 / 2,080 = $20

Part-Time Employee Calculations

Calculate your full-time equivalency (FTE) to determine your part-time hourly wage. The FTE represents the total number of actual paid hours during a period -- often a year -- divided by the total number of available full-time hours. Most companies consider 40 hours a week or 2,080 hours a year to be full-time. For example, if you worked 26 hours a week for 52 weeks, then your FTE is .65.

26 X 52 / 2080 = .65

Calculate your hourly wage by taking your monthly base rate of pay and multiplying it by 12 -- or your bimonthly pay and multiplying it by 26. Divide that number by 2080 times the FTE.

For example, if your total monthly salary as a part-time employee is $1500 and the FTE is .65, your hourly wage is $13.31.

$1500 X 12 / 2080 X .65 = $13.31

Talk to your human resources department, as they may have a company-wide or a department-wide FTE that they suggest you use.


As curriculum developer and educator, Kristine Tucker has enjoyed the plethora of English assignments she's read (and graded!) over the years. Her experiences as vice-president of an energy consulting firm have given her the opportunity to explore business writing and HR. Tucker has a BA and holds Ohio teaching credentials.

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