Enter your hourly rate, days per week worked, # of weeks worked per year, and hours per day into the annual income calculator. The calculator will return your equivalent annual salary.

## Annual Income Formula

The following calculator can be used to calculate your hourly to salary rate.

Annual Salary = P*D*H*W+B/O

- Where P is your hourly pay rate
- D is the number of days worked per week
- H is the number of hours worked per day
- W is the number of weeks worked per year
- Where B/O is bonuses or overtime

## Annual Income Definition

Annual income is defined as the annual salary before taxes an individual earns on a yearly basis.

## How to calculate annual income?

How to calculate annual income from hourly

**First, determine your hourly pay rate and working time**Your working time will include days per week, hours per day, and weeks per year. On average the number of weeks worked per year is around 50 weeks. The other 2 weeks are vacation. If you have vacation pay for these days, enter your weeks as the full 52 weeks.

**Next, determine any additional bonuses or overtime**This will be included in your annual income. All money received from your employer should be considered in you annual income.

**Calculate your annual income**Enter all of the information into the formula above to calculate your equivalent annual income.

## FAQ

**What is annual income?**

Annual income, also known as salary, is the amount of money earned per year through your job.

**Is hourly or salary better?**

Both pay structures have their benefit. Salary employees typically have better security while hourly employees can get paid for overtime.

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