Work hours & pay
True hourly wage calculator
Enter your salary, contracted hours and the hidden extras (unpaid overtime, commute, work costs) to see what you really earn for each hour work takes from you.
Assumes five commuting days per working week. Weeks worked should exclude paid vacation and public holidays; the salary still covers them.
How the true hourly wage is worked out
The contract rate is salary ÷ (contracted weekly hours × 52), the way employers usually quote an hourly equivalent. The true wage instead divides what you keep after job costs by all the time the job takes. Time = weeks worked × (contracted hours + unpaid extra hours) + daily commute × 5 × weeks worked. Money = salary − 12 × monthly work costs such as fares, fuel, parking, work clothes or lunches you would not otherwise buy.
Worked example with the defaults: a $60,000 salary at 40 hours has a contract rate of 60,000 ÷ 2,080 = $28.85. Over 48 working weeks, 45 hours a week is 2,160 hours, and 50 minutes of commuting a day adds 200 more, for 2,360 hours. Costs of $150 a month take $1,800, leaving $58,200. The true wage is 58,200 ÷ 2,360 = $24.66 an hour, about 14.5% below the contract rate.
| What is counted | Hours a year | Money kept | Per hour |
|---|---|---|---|
| Contracted hours only, 48 weeks | 1,920 | $60,000 | $31.25 |
| + 5 unpaid hours a week | 2,160 | $60,000 | $27.78 |
| + 50 min commute a day | 2,360 | $60,000 | $25.42 |
| + $150 a month in costs | 2,360 | $58,200 | $24.66 |
Reading your result
The first row shows why the true wage can come out higher than the contract rate: paid vacation and holidays mean you are paid for 52 weeks but work fewer. Each line after it pulls the figure down, and in most cases the commute is the largest single item. The US Census Bureau's American Community Survey puts the average one-way commute at roughly 27 minutes, close to an hour a day in total.
Use the number to compare offers on equal terms. A job paying $5,000 more with an extra 40 minutes of daily travel and regular unpaid evenings can pay less per hour of your life than the one you have. It is also a fair way to judge remote or hybrid arrangements: halving commuting days removes part of the commute line and often a large share of the costs.
Only include costs the job causes. Rent, ordinary groceries and a phone you would keep anyway do not belong here, and the calculation is before tax, so compare offers in the same tax position. Unpaid hours should be your honest weekly average, including emails answered in the evening.
Frequently asked questions
How do I calculate my real hourly wage?
Subtract yearly job costs from your salary, then divide by every hour the job takes: contracted hours, unpaid extra hours and commuting, over the weeks you actually work.
Should commuting time count as working time?
Legally it usually does not, but it is time you give up because of the job, so it belongs in a true hourly wage comparison between jobs.
Why is my true hourly wage higher than my contract rate?
If your vacation and holidays are paid and you have few extra hours or costs, you are paid for 52 weeks but work fewer, so each hour actually worked earns more.