# How To Calculate Annual Income (5 Ways To Do It)

When you start a new job or get a raise, it helps to know what the new annual pay will be.  The way to find it will depend on how you are paid (hourly, daily, weekly, biweekly, or monthly).

So, how do you calculate annual income?  Here are some shortcuts to approximate annual income: double the hourly pay & move the decimal point 3 places right. Divide daily pay by 4 & move the decimal point 3 places right. Divide weekly pay by 2 & move the decimal point 2 places right. Multiply biweekly pay by 26. Multiply monthly pay by 12.

Of course, the exact annual salary you earn will depend on paid vs unpaid time (vacation, sick days, etc.).

In this article, we’ll give some examples of how to calculate annual income from hourly, daily, weekly, biweekly, and monthly pay.

Let’s get started.

## How To Calculate Annual Income

To calculate annual income, you will need to convert from another form of pay (hourly, daily, weekly, biweekly, or monthly).

The table below offers a shortcut method to calculate your annual income from each of the forms of pay.

Let’s take a closer look at each method used to calculate annual salary.

### How To Calculate Annual Income From Hourly Pay

Here is a good shortcut method to calculate annual income from hourly pay:

• First, double the hourly pay.
• Next, add three zeros to the end of the number from the first step.

This method assumes that you work full-time with two weeks unpaid (40 hours per week times 50 weeks per year = 2,000 hours).  If your hourly pay is H, then your annual pay is 2,000*H = 2H*1,000 (double your hourly rate, with three zeros at the end).

#### Example 1: Calculate Annual Income From Hourly Pay (Shortcut Method)

Let’s say that your hourly rate is \$25.00 per hour.  Using the steps in the shortcut method to calculate your annual pay:

• First, double the hourly pay: 2*\$25.00 = \$50.00.
• Next, add three zeros to the end of the number from the first step: this gives us \$50,000.

So, with an hourly rate of \$25 per hour, your annual income is about \$50,000 per year.

#### Example 2: Calculate Annual Income From Hourly Pay (Shortcut Method)

Let’s say you get a 10% raise and your hourly rate is now \$27.50 per hour.  Using the steps in the shortcut method to calculate your annual pay:

• First, double the hourly pay: 2*\$27.50 = \$55.00.
• Next, add three zeros to the end of the number from the first step: this gives us \$55,000.

So, with an hourly rate of \$27.50 per hour, your annual income is about \$55,000 per year.

If you want to be as accurate as possible, you will need to figure out the exact number of hours worked in the year.  For 52 full weeks at 40 hours per week, this would be 52*40 = 2080 hours per year.

#### Example 3: Calculate Annual Income From Daily Pay

Let’s say that your hourly rate is \$32.50 per hour.  You worked 40 hours per week for 45 weeks of the year, but you were out with an injury for the other 7 weeks.

• First, we find the hours worked in the entire year: (40 hours)*(45 weeks) = 1,800 hours.
• Next, we multiply the hours worked by the hourly rate: (1,800 hours)*(\$32.00 per hour) = \$57,600.

So, the annual income in this case is \$57,600 per year.

### How To Calculate Annual Income From Day Rate (Daily Pay)

Here is a good shortcut method to calculate annual income from day rate (daily pay):

• First, divide the daily pay by 4.
• Next, take the result from step 1 and move the decimal point three places to the right.

This method assumes that you work full-time with two weeks unpaid (50 weeks per year times 5 days per week = 250 days).  If your daily pay is D, then your annual pay is 250*D = (D/4)*1,000 (your daily rate divided by 4, times 1,000).

You can also just multiply the hourly rate by 250 to get the same result.

#### Example 1: Calculate Annual Income From Day Rate (Shortcut Method)

Let’s say that your daily rate is \$180.  Using the steps in the shortcut method to calculate your annual pay:

• First, divide the daily pay by 4: \$180 / 4 = \$45.
• Next, take the result from step 1 and move the decimal point three places to the right: \$45,000.

So, with a daily rate of \$180, your annual income is about \$45,000 per year.

We get the same result if we multiply (\$180 per day)*(250 days per year).

#### Example 2: Calculate Annual Income From Day Rate (Shortcut Method)

Let’s say that you get a 10% raise, so your daily rate is now \$198.  Using the steps in the shortcut method to calculate your annual pay:

• First, divide the daily pay by 4: \$198 / 4 = \$49.50.
• Next, take the result from step 1 and move the decimal point three places to the right: \$49,500.

So, with a daily rate of \$198, your annual income is about \$49,500 per year.

We get the same result if we multiply (\$198 per day)*(250 days per year).

If you want to be as accurate as possible, you will need to figure out the exact number of days worked in the year.  For 52 full weeks at 5 days per week, this would be 52*5 = 260 days per year.

#### Example 3: Calculate Annual Income From Daily Pay

Let’s say that your daily rate is \$250.  You worked for 5 days per week for 48 weeks of the year and took 4 weeks of unpaid vacation.

• First, we find the days worked in the entire year: (5 days per week)*(48 weeks) = 240 days.
• Next, we multiply the days worked by the daily rate: (240 days)*(\$250) = \$60,000.

So, the annual income in this case is \$60,000 per year.

### How To Calculate Annual Income From Weekly Pay

Here is a good shortcut method to calculate annual income from weekly pay:

• First, divide the weekly pay by 2.
• Next, take the result from step 1 and move the decimal point two places to the right.

This method assumes that you work full-time with two weeks unpaid (50 weeks per year).  If your weekly pay is W, then your annual pay is 50*W = (W/2)*100 (half your weekly rate, times 100).

You can also just multiply your weekly rate by 50 to get the same result.

#### Example 1: Calculate Annual Income From Weekly Pay (Shortcut Method)

Let’s say that your weekly rate is \$1,200.  Using the steps in the shortcut method to calculate your annual pay:

• First, divide the weekly pay by 2: \$1,200 / 2 = \$600.
• Next, take the result from step 1 and move the decimal point two places to the right: \$60,000.

So, with a weekly rate of \$1,200, your annual income is about \$60,000 per year.

We get the same result if we multiply (\$1,200 per week)*(50 weeks per year).

#### Example 2: Calculate Annual Income From Weekly Pay (Shortcut Method)

Let’s say that you get an 8% raise, so your weekly rate is now \$1,296.  Using the steps in the shortcut method to calculate your annual pay:

• First, divide the weekly pay by 2: \$1,296 / 2 = \$648.
• Next, take the result from step 1 and move the decimal point two places to the right: \$64,800.

So, with a weekly rate of \$1,296, your annual income is about \$64,800 per year.

We get the same result if we multiply (\$1,298 per week)*(50 weeks per year).

If you want to be as accurate as possible, you will need to figure out the exact number of weeks worked in the year.  For a full year with no time off, that would be 52 full weeks.

#### Example 3: Calculate Annual Income From Weekly Pay

Let’s say that your weekly rate is \$2,000.  You worked for 40 weeks of the year and took 12 weeks of unpaid time to care for family.

To find annual pay, we multiply the weeks worked by the weekly rate: (40 weeks)*(\$2,000 per week) = \$80,000.

So, the annual income in this case is \$80,000 per year.

### How To Calculate Annual Income From Biweekly Pay

Here is a good shortcut method to calculate annual income from biweekly pay:

• Multiply biweekly pay by 26.

This method assumes that you work full-time with no vacation (or you get paid vacation), so 52 weeks per year.  Since you are paid every 2 weeks, then there will be 52 / 2 = 26 biweekly paychecks.

If your biweekly pay is B, then your annual pay is 26*B.

#### Example 1: Calculate Annual Income From Biweekly Pay (Shortcut Method)

Let’s say that your biweekly rate is \$2,000.  Using the steps in the shortcut method to calculate your annual pay:

• Multiply biweekly pay by 26: (\$2,000)*(26) = \$52,000

So, with a biweekly rate of \$2,000, your annual income is about \$52,000 per year.

#### Example 2: Calculate Annual Income From Biweekly Pay (Shortcut Method)

Let’s say that you get a 9% raise, so your biweekly rate is now \$2,180.  Using the steps in the shortcut method to calculate your annual pay:

• Multiply biweekly pay by 26: (\$2,180)*(26) = \$56,680

So, with a biweekly rate of \$2,180, your annual income is about \$56,680 per year.

### How To Calculate Annual Income From Monthly Pay

Here is a good shortcut method to calculate annual income from biweekly pay:

• Multiply monthly pay by 12.

If your monthly pay is M, then your annual pay is 12*M, since there are 12 months in the year (and thus 12 monthly paychecks).

#### Example 1: Calculate Annual Income From Monthly Pay (Shortcut Method)

Let’s say that your monthly rate is \$3,000.  Using the steps in the shortcut method to calculate your annual pay:

• Multiply monthly pay by 12: (\$3,000)*(12) = \$36,000

So, with a monthly rate of \$3,000, your annual income is about \$36,000 per year.

#### Example 2: Calculate Annual Income From Monthly Pay (Shortcut Method)

Let’s say that you get a 7% raise, so your monthly rate is now \$3,210.  Using the steps in the shortcut method to calculate your annual pay:

• Multiply monthly pay by 12: (\$3,210)*(12) = \$38,520

So, with a monthly rate of \$3,210, your annual income is about \$38,520 per year.

## Conclusion

Now you know how to calculate annual income from hourly, daily, weekly, biweekly, or monthly pay.