What is the formula to determine someone's annual salary given only the hourly wage?
For example, if someone works full time for $20 per hour, how much does he earn in a year?
A friend of mine told me the formula before; it's really simple. I just forgot it. Thanks!
If you consider full time as 40 hours per week at 52 weeks, then you multiply the hourly wage times 40 times 52.
Example: $20 x 40 x 52 = annual salary
Okay, I guess that's simple enough. Thank you.
And some people multiply the 40 x 52 first and remember $20/hr x 2080 =??
Then some employers don't pay for the two week vacation they give per year and they use $20 x 2000 (that is 50 weeks x 40hr/wk = 2000 hours). Somehow, though, I just never thought it was much of a vacation if the pay stopped for that two weeks.
"Somehow, though, I just never thought it was much of a vacation if the pay stopped for that two weeks."
And then there are teachers' salaries -- an annual salary divided by 10 -- which leaves two months each year without income unless one has been a scrupulous saver or has a special arrangement with the district or something.
At my university we had the option of dividing the salary by 10 or by 12 so the 12-month option was good for those who didn't have the discipline to save a part of the salary for the 10-month period for use during those lean two months.
I think the "multiply hourly wage by 2,000" is what I was looking for.
So someone who makes $20 per hour working full time makes about $20 * 2,000 = $40,000 per year.
That is true if they are on unpaid vacation for two weeks of the year. But then $20/hour x 2080 = $41,600 (see the answer by Ms Sue) which is also "about $40,000/year." I guess what is "about" in this case depends upon the view point; i.e., from the employeer's or the employee's point of view.