As a salaried professional, you’re probably used to getting paid monthly, semi-monthly or bi-weekly. However, there might be instances when you are paid by the hour, particularly for independent consulting or private contracting work. Converting these hourly rates to monthly figures allows you to budget for monthly expenses. If you do the conversion a step at a time, you can easily remember the final formula.
Multiply your hourly rate by the number of hours you typically work in a week. For example, suppose you earn $20 an hour and work a full 40 hours a week. Multiplying a $20-an-hour wage by 40 yields $800.
Multiply the result by the number of weeks you work in a year. If you work a full 52 weeks, you would multiply $800 by 52 to get a yearly total of $41,600.
Divide the yearly total by 12, the number of months in a year, for the final result. In this example, dividing $41,600 by 12 gives a monthly wage of $3,466.
Remember the following formula for future calculations: Monthly wage = (hourly wage x hours a week x number of weeks) / the number of months.
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