Annual Income Calculator

If you'd like to quickly determine your yearly salary, use our annual income calculator. It can also figure out an hourly rate, which may be useful when looking through job offers.

If you're wrestling with questions like "What does annual income mean?" or "How to find annual income?" – read the text, and you'll find the answers there. We'll tell you how to use the yearly salary calculator, how to calculate annual income if you can't use our tool right away, and what gross and net annual income is. The tool can serve as an annual net income calculator or as a gross annual income calculator, depending on what you want.

For more options, visit our salary to hourly calculator.

Once you've figured out your yearly salary, check which tax bracket you are in, consider planning your budget, look into your savings, and think about early retirement.

Prefer watching over reading? Learn all you need in 90 seconds with this video we made for you:

Effortlessly calculate your annual income and understand your net salary after taxes with our comprehensive calculator. Here's your guide to using it:

1. Input weekly working hours: Begin by entering the number of hours you work per week.

2. Enter working weeks per year: Input how many weeks per year you work. Don't forget to adjust for any unpaid leave or holidays.

3. Specify hourly wage: Enter your hourly wage into the calculator.

4. Calculate annual income: Based on the information provided, the calculator will automatically display your total annual income before taxes.

5. Deduct taxes for net salary: Enter your tax rate percentage to see your net salary, which is your take-home pay after taxes have been deducted.

This calculator also allows for reverse calculations:

• If you know your annual income and want to determine what your hourly wage is, simply input your annual income and the number of working hours and weeks, and the calculator will provide the hourly wage.
• Similarly, if you have your net salary and know your tax rate, you can work backward to find out your gross annual income.

For instance, if your hourly wage is $34, you work 40 hours per week, and 52 weeks per year, your annual income would be $70,720. If you are taxed at 12%, your net annual income would come to $62,233.60.

Explore further to learn about salary structures, tax deductions, and how to plan your finances effectively using this calculator.

The formula for the annual income is as follows:

annual income = hourly wage × hours per week × weeks per year

If you want to do it without the yearly salary income calculator, substitute your numbers into this formula. If you're still confused about how to find annual income, have a look at the examples.

What does "annual income" mean? "Annual" means yearly, and "income" means profit, the money earned or received. Therefore, annual income means the amount of money obtained during a year.

Now, what are net annual income and gross annual income?

Gross means before taxes and net means after deducting taxes. What you receive in your bank account is net income.

To sum up – gross annual income is the amount of money your employer spent on you in a year. The annual net income is the yearly sum you received (after tax deduction).

Gross income is money before taxation. You can read more about it in the net to gross calculator.

The first four fields serve as a gross annual income calculator. To calculate gross annual income enter the gross hourly wage in the first field of this yearly salary calculator. The result in the fourth field will be your gross annual income.

If you're wondering how to calculate gross annual income by yourself – use the formula mentioned earlier; just remember to use your gross hourly wage.

Some money from your salary goes to a pension savings account, insurance, and other taxes. Net income is the money after taxation. To know more about calculating net income, check out our gross to net calculator.

There are two ways to determine your yearly net income:

1. Set the net hourly rate in the net salary section; or

2. Enter either your gross hourly wage into the first field or your gross annual income into the fourth field. Then enter the tax rate for both.

Remember to adjust the first two fields of the calculator as necessary. The annual net income calculator will display the result in the last field.

If you're still curious about how our yearly salary calculator works, here are two examples showing it in practice:

• Susanne earns $15 per hour and works full time (40 hours per week), 52 weeks a year. To determine her annual income, multiply all the values:

  15 × 40 × 52 = 31,200

  Susanne's yearly salary equals $31,200.

• Josh gets paid $500 weekly ($12.5 per hour at his full-time job, 40 hours per week). He takes 2 weeks of unpaid holiday per year. What's his annual income?

  We know the weekly income, so, to determine the annual salary, we have to know how many weeks Josh works. We know there are 52 weeks in a year, out of which there are 2 where he doesn't get paid. We need to do the subtraction: 52 − 2 = 50. Now we'll multiply the number of weeks by Josh's weekly wage:

  50 × 500 = 25,000

  His annual income equals $25,000.

Of course, you can repeat these calculations with our annual salary calculator in no time!

The annual income calculator's main aim is to help you find your yearly salary. However, it can calculate the rest of the variables - it depends on which values you input first.

To calculate the hourly wage:

0. Reload the yearly income calculator if you've been using it already. Use the reload calculator button below the calculator.

1. Fill in the last field of the annual salary calculator first.

2. Adjust the working hours and working weeks as needed.

3. You'll see the hourly wage in the first field of the annual income calculator.

How to calculate working hours

If you'd like to determine how many hours per week you'd have to work to earn a particular amount of money per year:

1. Reload the calculator. Clear the default number of working hours.

2. Set the number of weeks you'll work in a year.

3. Input your annual income and hourly wage.

To calculate working weeks:

1. Reload the calculator. Clear the default number of working weeks.

2. Set the working hours per week, annual income, and hourly wage.

Tibor, a PhD in Statistical Methods in Economics, has been the driving force behind the development of the annual income calculator.

Motivated by the challenges professionals face in calculating their earnings and understanding their take-home pay, Tibor designed this tool to simplify the process. He recognized the value of a calculator that could not only compute annual income based on hourly rates but also reverse-engineer the calculations to deduce hourly wages from annual salaries.

The annual income calculator has become an indispensable tool for Tibor, aiding in transparent financial planning and salary assessments. It is equally beneficial for users ranging from freelancers to full-time employees who need to understand their compensation structure better.

The accuracy of this calculator is a testament to our commitment to providing reliable and precise tools. It has been peer-reviewed by financial experts to ensure its fidelity and proofread for clarity, making it a trusted resource for financial planning. For an in-depth understanding of our editorial standards, our Editorial Policies page provides all the necessary information.