If you are paid hourly, you want to know how much money you are making in a year.
To calculate how much $15 dollars an hour is in annual terms, we first have to take into account if you are a full time employee or a part time employee and how many hours you work per week.
If you are working a standard working week of 40 hours per week, we simply take 40 hours and multiply this by 52 weeks to get a total working hours of 2,080 for the year.
All that is left to do is multiple $15 by 2,080 to get an annual salary of $31,200.
So a $15 hourly wage is $31,200 annually.
But this isn’t the exact answer all of the time.
There are other factors that come into play.
Maybe you don’t get paid vacation time. Maybe you work less than 40 hours a week. Or maybe you work overtime.
All of these will make the calculation for turning your hourly pay rate into an annual salary a little different.
In this post, I’ll go over these factors so you can get a better idea of how much you will be earning this year.
How Much Is $15 Dollar An Hour Annually
To get a more accurate annual salary, we will look at some different scenarios that come into play and have an impact on your income.
No Paid Vacation
To figure out your annual salary with no paid time off, you first have to know how much time off you get.
Let’s assume it is 2 weeks unpaid vacation.
Since there are 52 weeks in a year, you subtract the 2 weeks you are not paid to get to 50 weeks.
From here, we simply multiply 50 weeks by 40 hours to get 2,000 working hours.
Multiply 2,000 by $15 and you get $30,000 annual income.
How Much Is $15 Dollars An Hour Working Part Time
If you work part time hours, the good news is the math for figuring out your annual salary is simple.
We have done the equation above, we just have to change one number.
To figure out your annual salary working part time for $15 an hour, take the number of hours you work per week and multiple that by 2,080.
This assumes you work all year and if you get vacation time, you are paid for it.
For example, if you work 35 hour work weeks, 35 times 52 is 1,820 working hours.
Take 1,820 and multiply it by $15 and you get $27,300.
If you work fewer than 35 hours a week, take your weekly work hours and multiply it by 52.
Then take that number and multiply it by $15 to get your annual salary.
What If You Work Overtime?
The math for figuring out your income is just as easy if you work overtime.
The problem though is the answer might not be accurate.
I say this because the formula assumes you work the same amount of overtime for the entire year.
If you end up not working overtime for a few weeks, the amount you calculate will be wrong.
In any case, here is the formula.
To start off, we will take 40 hours a week at 52 weeks a year to get 2,080 working hours.
Take 2,080 and multiply it by $15 to get $31,200.
Next, we need to figure out your overtime hours.
Let’s assume you work 5 hours of overtime per week.
5 times 52 weeks is 260 working hours.
Since most overtime pay rates are 1 ½ times your hourly wage, we can’t multiply this number by $15.
We have to multiply it by $22.50, which is your overtime pay rate.
So 260 multiplied by $22.50 is $5,850.
Take this amount and add it to $31,200 to get an annual salary of $37,050
If on the other hand your company pays an overtime premium rate, like double the pay rate for working Sundays or holidays, then you will have to use $30 per hour instead.
The Most Accurate Estimate Of Annual Income
If you want the most precise estimate of your annual salary, the best approach is to look at a calendar for the current year and total up the exact number of working days.
Depending on the year, this number can vary slightly.
The reasons for this include holidays, and even leap years.
For 2021, there are 261 work days.
Next take $15 and multiply this by 8, which is a standard work shift, to get $120.
Take 261 and multiply this by $120, assuming you work full time, to get $31,320 annual income.
Earning $15 Dollars An Hour For Other Time Periods
To save you from finding an hourly to salary calculator, here are the more common inputs you would need to calculate your yearly salary.
$15 An Hour Per Day
Earning $15 an hour per day, you would take $15 and multiply it by the hours worked.
Assuming this number is 8 hours, it comes to a daily salary of $120 per day.
$15 An Hour Per Week
There are two ways to figure out your weekly salary.
You could take $15 and multiply it by the hours you work in a week.
So if you work 40 hours a week, you take $15 times 40 to get $600.
Or you could take your daily income of $120 and multiply this by the number of days per week you work.
In this case, assuming you work 5 days a week, you earn $600 per week.
$15 An Hour Per Month
The calculation for your monthly salary is tricky because each months number of work days vary.
The best way to do this is to add up the number of days you will work for the month and multiply this by $120, which is your daily income.
- Read now: Find out 25 ways to make $1,000 fast
So for a month with 22 work days, your monthly income is $2,640.
You could also figure out the total number of hours per month you will work and multiply this $15, but it will take you longer to figure out.
Gross Income Versus Net Income
Note that all the examples I gave in this post are calculating your gross income, not your net income.
In other words, you are earning $15 an hour before taxes.
Your net income is what your paycheck is for after to pay Federal income taxes, state income tax, health insurance premiums, retirement contributions, and others.
So if you look at your last paycheck at the end of the year and see your net income is less than the numbers we calculated here, this is why.
Luckily there are things you can do to lower your taxable income and keep more money.
- Read now: Learn how to save on taxes like the wealthy do
- Read now: Discover the difference between tax credits vs. tax deductions
You work hard for your money, so be sure to take the steps I outline in the above post to keep more of it.
At the end of the day, there are a few ways hourly workers can do the math to figure out your annual salary if you earn $15 dollars an hour.
And figuring out your annual salary based on these wages is important as there is renewed talks to increasing the Federal minimum wage to $15 per hour.
While most of the formulas will give you a close estimate, the one using exact working days will be the best match.
And as I pointed out, make sure you realize this number is your gross income, not your net income.
If you are trying to survive on $15 an hour, I encourage you to read the below posts for ways to cut your monthly expenses and save money.
They will help you get ahead financially and change your financial future.