What is the formula to determine someone's annual salary given only the hourly wage?
For example, if someone works full time for $20 per hour, how much does he earn in a year?
A friend of mine told me the formula before; it's really simple. I just forgot it. Thanks!
If you consider full time as 40 hours per week at 52 weeks, then you multiply the hourly wage times 40 times 52.
Example: $20 x 40 x 52 = annual salary
Okay, I guess that's simple enough. Thank you.
And some people multiply the 40 x 52 first and remember $20/hr x 2080 =??
Then some employers don't pay for the two week vacation they give per year and they use $20 x 2000 (that is 50 weeks x 40hr/wk = 2000 hours). Somehow, though, I just never thought it was much of a vacation if the pay stopped for that two weeks.
"Somehow, though, I just never thought it was much of a vacation if the pay stopped for that two weeks."
For sure!
And then there are teachers' salaries -- an annual salary divided by 10 -- which leaves two months each year without income unless one has been a scrupulous saver or has a special arrangement with the district or something.
=)
At my university we had the option of dividing the salary by 10 or by 12 so the 12-month option was good for those who didn't have the discipline to save a part of the salary for the 10-month period for use during those lean two months.
I think the "multiply hourly wage by 2,000" is what I was looking for.
So someone who makes $20 per hour working full time makes about $20 * 2,000 = $40,000 per year.
That is true if they are on unpaid vacation for two weeks of the year. But then $20/hour x 2080 = $41,600 (see the answer by Ms Sue) which is also "about $40,000/year." I guess what is "about" in this case depends upon the view point; i.e., from the employeer's or the employee's point of view.
Wow you are the webmaster?!
Maybe he is.. :D
Yes, you are correct. Different formulas can be used depending on factors such as vacation time and the number of months worked per year.
If someone works full time for 40 hours per week and 52 weeks per year, you can multiply their hourly wage by 40 and then by 52. For example, if someone makes $20 per hour, their annual salary would be calculated as $20 x 40 x 52 = $41,600.
However, if the person has two weeks of unpaid vacation per year, you can subtract the number of hours equivalent to two weeks (40 hours/week x 2 weeks = 80 hours) from the total number of hours worked per year. In this case, the formula would be $20 x (40 x 52 - 80) = $40,000.
It's important to consider these factors when calculating someone's annual salary accurately.