Annual Income Calculator

Annual income is a unit-rate problem: multiply the amount of one pay period by the number of those periods in a year.

$\text{Annual} = \text{pay per period} \times \text{periods per year}$

For hourly work the period is an hour, so the chain has two links:

$\text{Annual} = \text{rate} \times \frac{\text{hours}}{\text{week}} \times \frac{\text{weeks}}{\text{year}}$

• rate — pay for one hour
• hours/week — scheduled hours, not including unpaid breaks
• weeks/year — $52$ if every week is paid; use $50$ for two unpaid weeks, $48$ for four

The periods-per-year multipliers you will actually use:

A full-time year at 40 hours a week is $40 \times 52 = 2{,}080$ hours, which is why an hourly rate multiplied by $2{,}080$ is the standard shortcut.

Solving for the rate or the hours

Every version of the formula is one division away:

$\text{rate} = \frac{\text{Annual}}{\text{hours/week} \times \text{weeks/year}}, \qquad \frac{\text{hours}}{\text{week}} = \frac{\text{Annual}}{\text{rate} \times \text{weeks/year}}$

That is how you check whether a salary offer beats an hourly one: put both on the same annual basis, or both on the same hourly basis, then compare.

Overtime and multiple jobs

Income from separate sources simply adds:

$\text{Annual} = \sum_j (\text{rate}_j \times \text{hours}_j \times \text{weeks}_j)$

Overtime paid at a multiplier $m$ (commonly $1.5$) is its own term: $\text{rate} \times m \times \text{overtime hours}$. Add bonuses and commission as flat annual amounts.

Gross versus net

Everything above computes gross income — pay before deductions. Net (take-home) pay is gross minus income tax, social contributions, pension and insurance, and those depend entirely on where you live, your filing situation and the current year's rules. This page is a math tool: it will do the arithmetic on any deduction figures you supply, but it does not know your tax rules and cannot look them up for you.

• Multiplying biweekly pay by 24: biweekly is every two weeks, so $26$ periods a year. Semi-monthly is twice a month, so $24$. They are not the same, and the gap is two full paycheques.
• Assuming 4 weeks per month: a month averages about $4.35$ weeks. Weekly pay $\times 4 \times 12$ undercounts a 52-week year by four paycheques.
• Paying yourself for unpaid weeks: if you take two unpaid weeks, use $50$, not $52$. Contractors and seasonal workers routinely overstate annual income here.
• Comparing a gross salary to a net wage: put both on the same basis before comparing offers.
• Forgetting overtime is a separate term: overtime hours are paid at a different rate, so they cannot ride along inside the base hours.
• Treating the annual figure as guaranteed: it is a projection built from the hours you entered. Fewer hours worked means a smaller total; the formula has no opinion about that.