The hourly rate of pay is calculated by dividing the gross salary for a specific period by the number of hours worked in that same period. Gross salary is the amount earned prior to any deductions.
Know MoreThe same formula applies whether the salary being converted is annual, monthly, bi-monthly, or weekly. For example, if an individual receives a weekly check with a gross pay of $1,200, and he worked 40 hours that week, his hourly rate is $30.00. Similarly, an individual receiving an annual gross salary of $62,400 who works 40 hours per week, or 2,080 hours annually, also makes $30.00 per hour.
Learn more about Financial CalculationsAccording to AccountingTools, gross sales are calculated by adding up the revenue from all sales transactions without taking into account any costs. This is in contrast to net sales, which subtract costs like operating expenses or taxes.
Full Answer >Real interest rate is calculated by adjusting for the effects of inflation when compared to the nominal interest rate. The calculation formula is simple, as it only requires subtracting the rate of inflation from the nominal interest rate. The value left after subtraction is the real interest rate.
Full Answer >Theoretical yield is calculated by balancing the reaction and determining the ratio of reactant to the product. Find the starting number of each material used, determine the reagent, and calculate the number of moles and grams of the product. Then isolate and measure the amount of product to compare the actual yield to the theoretical yield.
Full Answer >Interest expense is calculated as the interest rate multiplied by the amount of the outstanding principal of the debt. Defined by Investopedia, interest expense is the cost incurred by an entity on borrowed funds.
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