Calculating Gross Monthly Income as an Hourly Employee

The calculation is a little more complicated for hourly employees – you need to first multiply your hourly wage by the number of hours you work per week, and then multiply the total by 52, thus finding your gross annual income. Then, divide your annual gross income by 12 to find the monthly amount. If your hours vary from week to week, use your best estimate of the number of hours you work on average.

$GrossMonthlyIncome=\frac{HourlyPay\ast HoursPerWeek\ast 52}{12}$

For example, if your hourly wage is $20 and you work 40 hours per week, your weekly gross pay is $800. Multiplying this figure by 52 yields a yearly gross income of $41,600. Finally, dividing by 12 yields a monthly gross income of $3,467.

You can generally add any special circumstances, such as a certain number of overtime hours per month or a recurring bonus or commission, to your gross monthly income. The most common method is to divide the amount of overtime pay (or bonus or commission) you've received over the past year by 12. This amount would then be added to your gross monthly income from your base pay.