How to Calculate Hourly Pay From Yearly Salary

How to Calculate Hourly Pay From Yearly Salary

Calculate your hourly wage by dividing the yearly salary by the number of hours you work. This is easy to track if you work regular hours each week, but for exempt employees that do not get paid overtime you will need to have an estimate of how many hours you work. You can figure the rate before deductions by using the base salary. If you want an actual take-home pay figure, account for bonuses and deductions as well.


  1. Figure out your annual salary. Include bonuses and deduct taxes, social security and health insurance if these are applicable and you want to end up with a hourly figure for your actual take-home pay.

  2. Add up the number of hours you work in a year. The better your estimate, the more accurate your calculation will be. For a 40-hour work week, 52 weeks a year, you would work 2,080 hours annually.

  3. Divide the salary figure from Step 1 by the total number of hours worked. If your annual salary is £26,000 and you work 2,080 hours each year, your hourly wage is £12.50.

Tips and warnings
  • A standard work week of 40 hours is about 2,000 hours per year. If your work week is around that amount you can get a quick, rough calculation of your hourly wage by dividing your salary by 2,000. A £39,000 annual salary is about £19.50 per hour.
Tags: Money