# How To Calculate Adjusted Gross Income With Hourly Wage | Finance

By: Angela M. Wheeland | Reviewed by: Ashley Donohoe, MBA | Updated on March 13, 2019

While it’s difficult to calculate your exact AGI from an hourly wage, you can calculate an estimate of what your AGI should be at the end of the year using one of the many tools, including a adjusted monthly income calculator.

You can estimate your adjusted gross income from an hourly wage by first calculating your total gross income. You can start by determining the estimated number of hours you work in a year, noting that there are 52 weeks in a year.

For example, if you work 40 hours a week with a salary of \$ 25 an hour, your total number of annual hours is 2,080, or 40 hours multiplied by 52 weeks. You can also start at a more manageable level by calculating how much you earn per week. For example, an hourly wage of \$ 12.50 multiplied by 40 hours per week equals \$ 500.

Multiply your total annual hours by your hourly wage to determine an estimate of your gross income. Using the previous example, if you work 2,080 hours per year and receive \$ 20 an hour from your employer, your gross income is \$ 41,600, or 2,080 times \$ 20. You can also perform the same process using an adjusted monthly income calculator.

If you have income other than your salary from your job, such as small business income, second job income, or your spouse’s income, add it to the total. If you also plan to make \$ 125,000 from your small business, for example, add that amount to your gross income. Using the previous example, your total gross income is \$ 166,600, or \$ 41,600 plus \$ 125,000.

## Obtaining deductions

• \$ 250 for the expenses of a qualified educator
• Up to \$ 2,500 for interest on student loans
• Support payments made during the tax year
• Mortgage interest deduction, typically for all interest you pay up to \$ 750,000 on your qualifying primary residence and even a secondary residence
• Contributions to IRS Eligible Charities
• Eligible medical expenses that exceed 7.5% (or 10% for the 2019 tax year) of your adjusted gross income

Once you have determined what adjustments you can make, add them up and subtract them from your gross income to determine your estimated AGI. Using the previous example, if your adjustments are \$ 14,200, your AGI is \$ 152,400, or \$ 166,600 minus \$ 14,200.