Calculators · Time
Real hourly rate calculator
This real hourly rate calculator divides your salary by all the hours you work, paid and unpaid, to show what you earn per hour.
Your numbers
Everything updates as you type. Nothing is uploaded.
Result
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The formula
Real hourly = annual salary ÷ (contracted hours + unpaid hours)
Yearly contracted hours = contracted hours per week × working weeks per year. You can change both. The default of 46 working weeks is an assumption that allows for leave. A common convention for converting a salary to an hourly rate is 2,080 hours a year (40 hours × 52 weeks). Enter 52 weeks to use it.
Unpaid hours is daily unpaid minutes multiplied by days per week and working weeks, divided by 60.
Worked example
Example: a salary of 85,000 (in any currency), 40 contracted hours a week and 46 working weeks give 1,840 contracted hours. That is a nominal rate of 46.20 an hour. Add 25 minutes of unpaid work a day, five days a week, and that is 95.8 unpaid hours a year. The real rate falls to 43.91 an hour, 2.29 less. At the nominal rate, the unpaid time is worth about 4,427 a year. On the 2,080-hour convention (52 weeks), the same salary is 40.87 an hour nominal.
Common questions
Should I include my commute?
Not in this calculation, but it is worth doing separately when comparing two jobs, since it is time the job costs you.
What about benefits?
Give the ones you want to count a yearly cash value and add them to salary before dividing. Pension contributions and continuing education (CEU) allowances are examples.
Is this a legal claim?
No. It is a personal decision-making tool, not legal or employment advice. Whether unpaid working time is lawful depends on your classification and where you work. In the US, work your employer did not ask for but allows still counts as hours worked.
Longer explanation: How to calculate your real hourly rate with unpaid time