In this video we discuss how to calculate gross weekly, yearly and monthly earnings or pay from an hourly pay rate. We show the formulas for each of these and go through examples for each calculation.
Transcript/notes
The formula for calculating salary or gross earnings for a week, or the total amount earned before any tax or other deductions is gross weekly earnings equals number of hours worked times the rate per hour, or their hourly wage.
For instance, if someone is paid at a rate of $13.25 per hour, and works 32 hours during a given week, the formula would be gross earnings equals 32, times $13.25, which calculates to $424 for the week.
And if you want to calculate gross earnings for the year, it is hours worked, times rate per hour times 52. We are multiplying by 52 because there are 52 weeks in a year.
As an example, let’s say that someone works a typical 40 hour work week and makes $16.50 per hour. The formula would be gross yearly earnings equals 40, times $16.50, times 52, which calculates to $34,320.
And if you want to calculate monthly earnings, you would calculate the yearly earnings, which we just did, and divide by 12 months. Using the previous example which calculated to $34,320 per year, we take that $34,320 and divide by 12, which equals $2860, as the monthly earnings.
Timestamps
0:00 Calculate weekly earnings from hourly pay rate
0:30 Calculate yearly earnings from hourly pay rate
1:00 Calculate monthly earnings from hourly pay rate
