Effective Hourly Rate from Salary
Your true hourly rate depends on more than salary.
Start with
/finance/salary-to-hourly-calculator, then add benefits and subtract costs to get the real figure.
Factors to include
- Unpaid overtime or after-hours work
- Commute time and costs
- Benefits value (health, retirement match)
- Paid time off (reduces hours worked for same pay)
Method
Effective hourly rate ≈ (salary + benefits value − costs) ÷ total hours invested
Example
Add employer match and subtract commute costs before dividing by total hours.
FAQs
Why include commute?
It’s time and money required to earn your salary; it affects your real hourly value.
How do I value benefits?
Use employer cost or market rates for coverage and match.
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