Annual Pay

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Annual Pay Calculation:

  •  P =

    Wages received for one hour of work

  • hd =

    Average number of hours in a single work day

  • dw =

    Average number of days worked each week

  • wy =

    Number of weeks worked in the year after subtracting unpaid holiday or vacation

  • hy =

    Total number of paid hours worked each year

  • pd =

    Total wages paid in a day before deductions

  • pw =

    Total wages paid in a week before deductions

  • pa =

    Total wages paid in a year before deductions

  •

    Choose the number of decimals to show in your answer. This is also known as significant figures. Select an appropriate amount of significant figures based on the precision of the input numbers.

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Annual Pay Formula

Hourly wage can be turned into an estimate of annual pay by multiplying the total paid hours worked in the year by the hourly wage. This etimate does not consider taxes, deductions, changes in hourly rate, or other factors that may change the annual pay.

Annual pay = (hourly wage * hours per year)

Annual Pay Variables

Hourly wages can be expressed as an estimate of annual pay with an estimate of the number of hours worked per year. To simplify the processes of estimating annual hours we take three inputs: hours per day, days per week, and work weeks per year.

Hourly Pay (P)
Amount of local currency paid for one hour of work. Assumed here to be dollars ($) but could be any currency.
Hours per Day (hd)
Average hours worked in a day. Typical values could be 7.25, 8, 12.
Days per Week (dw)
Average number of days worked per week.
Weeks per Year (wy)
Weeks of paid work per year. Subtract any unpaid vacation weeks or holidays.
Hours per Year (hy)
Given the input work schedule how many hours are spent working in one year. A year is a 52 week period for the purpose of the calculation.
Daily Pay (pd)
Given the hourly rate and hours per day how much is paid each day. Deductions are not considered.
Weekly Pay (pw)
Given the hourly rate and hours per week how much is paid each week. Deductions are not considered.
Annual Pay (Pa)
Given the hourly rate and hours per year how much is paid year day. Deductions are not considered.

Annual Pay Example

If eight hour shifts are worked Monday to Friday every week how much money is received after a year from an hourly wage of $25?

  • Pa = P * hd * dw * wy
  • Pa = 25 * 8 * 5 * 52
  • Pa = 25 * 8 * 5 * 52
  • $52000

Working eight hours a day from Monday to Friday for 52 weeks a year is equal to working 2080 hours. If a wage of $25 per hour is paid then annual income will be $52000, less any deductions.