Annual Salary vs. Hourly Wage
April 29th, 2009
When comparing pay between various jobs, it’s always easier to compare apples to apples. Below are two simple calculations that you can use to compare salaries vs. wages.
Calculating Hourly Wage
If you are paid a salary, a simple way to calculate how much you make per an hour is to divide your salary by 2000. For example, if you make $40,000 a year, that would equal $20/hour ($40,000/2,000 hours).
Calculating Annual Salary
The above calculation also works in reverse; if you are paid an annual salary, you can calculate how much you make per year by multiplying your hourly wage by 2000. For example, if you make $20/hour, that would equal $40,000/year ($20*2,000 hours).
The above calculations are based on the assumption that you work 40 hours week for 50 weeks out of the year (40 hours *50 weeks = 2000 hours). If you know the number of hours that you’ll work in a year, you can subsitute that number in place of 2000.
Written by: tim
Categories: Work