gross salary
The first
step in getting a handle on your finances is knowing your annual salary.
How to calculate annual salary will depend on whether you are paid on
an hourly basis or whether you receive a fixed salary.
Salary Calculators
Annual Salary Calculator
Annual Salary Calculator (Hourly)How to Calculate Annual Salary When Paid Hourly
- 1Multiply your gross (before deductions) hourly pay rate by the number of hours you work each week. The result is your weekly salary.
- 2Multiply your weekly salary by the number of weeks for which you are paid each year. If you only work one hourly paid position, the result is your gross annual salary.
- While there are 52 weeks in a year, if you work in a position that does not offer benefits such as paid vacation time, or if you are a seasonal worker, then the number of weeks for which you receive pay each year may be fewer than 52.
- If you hold more than one hourly paid position, record the result of this calculation, and go to the next step.
- 3Repeat the calculations in Steps 1 and 2 of this section for each hourly job you hold, and record each result.
- 4Add the results of each calculation from Step 2 together. This is your total gross annual salary.
How to Calculate Annual Salary for Fixed Salary Workers
- 1Determine the frequency with which you are paid. Some salaried employees are paid weekly (52 times per year), biweekly (26 times per year) or monthly (12 times per year).
- 2Multiply your gross pay per pay period by the number of pay periods per year as determined in Step 1 of this section. The result is your gross annual salary.
- Your gross annual salary is the amount you are paid before deductions for items such as local, state and federal taxes and any other deductions for employer-sponsored benefits, flexible spending accounts or other cafeteria plan benefit deductions. Your gross annual salary will be higher than your actual net, or "take home," annual salary.
- Your net annual salary is what is also known as your "take home" pay after all deductions for taxes and any deductions for things like cafeteria plan benefits. This is your spendable income. You can calculate your annual take home, or spendable, salary by following the same steps but substituting your net hourly wage or your net annual salary per pay period