To work out the hourly rate of an employee using their annual salary divide the annual salary by the number of hours worked during the year. A similar calculation can also be done using a monthly salary.
Know MoreTo calculate the number of hours worked in a year, take the amount of hours worked in a week and multiply that by 52. So assume the person works 37.5 hours a week. The calculation in this example would be 37.5 multiplied by 52, which equals 1,950 hours. So this employee works 1,950 hours in a year.
To get the hourly rate for the employee, divide the annual salary by the number of hours worked in the year. In the example mentioned above, assume the employee received a salary of $36,000 a year. That calculation would therefore be 36,000 divided by 1,950, which equals $18.46 an hour.
Sometimes it is easier to work out the hourly rate using a monthly salary rather than an annual salary. The number of hours worked in a month is required. If this is not available it can be worked out by multiplying the number of hours worked in a week by 52, and then dividing that by 12. To get the hourly rate divide this figure into the monthly salary.
The hourly rate for contractors varies according to what skill set or specialty the contractor has. As of January 2015, general construction laborers earn between $9.46 and $28.32 per hour, according to the Bureau of Labor Statistics. Construction managers have a median hourly wage of $38.98.
Full Answer >The annual business revenue is how much money a company generates in a year, whether from sales or interest from investment. Companies must keep up with annual revenue as it is a number used for tax purposes.
Full Answer >An annual percentage rate is used to refer to the yearly fee that a customer pays for borrowing money and is often called APR. An APR is most commonly used in cases of loans, credit cards or other credit agreements.
Full Answer >The compound annual growth rate, or CAGR, of an investment is calculated by dividing the ending value by the beginning value, taking the quotient to the power of one over the number of years the investment was held and subtracting the entire number by one. Then, turn the answer into a percentage from decimal form. The CAGR allows you to see an investment without all the ups and downs as if it had grown at an even, steady pace over the years.
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