I have a general question, gosh I really haven't learned anything in college or maybe I just a moron but how do you calculate yearly wages. I have 2 different ways of doing it not sure which is the correct way. 1st way was: hrs worked in a week* hourly wages = weekly pay weekly pay * 4 wks = monthly wages monthly wages * 12 months in a yr = yearly wages 2nd way was: hrs worked in a week * hourly wages = weekly pay weekly pay * 52 weeks in a yr = yearly wages I have use a couple of calculators via the internet and they seem to be using the second way. Then I saw a page on the web that was doing it manual written out and it was using the 1st method Which one is correct use of calculating your yearly wages because they both come out different when calculating them? Also which one is used in the mortgage process? I am confuse?????????????????????????
Here's an easy way: If you're hourly, say $10 an hour. $10 X 2080 (2080 is 52 weeks divided by 40) = $20,800 a year If you're salaried and get paid weekly X 52 If you're salaried and get paid every 2 weeks X 26 If you're salaried and get paid twice a month X 24 Mortgagers will go by your past two years income. They'll also consider how your situation is right now (i.e., salaried). If you get OT then they look for 2 years, although I've heard you can make an argument for one year.
Also, to figure monthly, it is hours per week times hourly rate = weekly amount. Weekly amount times 4.3 (not 4) = monthly amount.
