Converting an hourly wage to monthly income
Rent, bills, and loan payments are usually monthly, but hourly wages are paid by the hour. This calculator bridges that gap by working out your annual income first and then spreading it evenly across 12 months.
Monthly pay = (hourly wage × weekly hours × paid weeks + overtime + extra income) ÷ 12
Why ÷ 12 and not × 4
A year has 52 weeks, which is 4.33 weeks per month on average. If you multiply weekly pay by 4, you'll underestimate your income by about one week's pay every three months. Dividing your annual total by 12 avoids this.
Example: Priya earns $22 an hour, works 37.5 hours a week (7.5 × 5) and takes 1 unpaid week. Paid weeks = 51. Annual pay = $22 × 37.5 × 51 = $42,075. Monthly = $3,506.25.
Budgeting tips
- Budget with your net pay, not gross. Use the paycheck calculator to estimate deductions.
- If your hours change week to week, enter a conservative average.
- Paid biweekly? Two months a year contain three paychecks — a useful bonus for savings.
Landlords often ask that monthly gross income be about three times the rent. With the example above, that suggests rent around $1,170 a month. For a full breakdown of every pay period, use the hourly to salary calculator.