Effective Hourly Rate Calculator
"$90k salary" means nothing until you divide it by the hours your job actually takes, including the part they don't pay for.
Tip: log your real hours for one week (calendar blocks) before you type, most people guess 40 and work 50.
How the math works
- Nominal rate = salary ÷ (40 × 52). The number HR quotes.
- Real rate = (salary + bonus + benefits) ÷ ((actual hours + commute hours) × working weeks).
- After-commute rate = real rate's money minus commute cost, same hours.
- Unpaid-overtime loss = (nominal − real) × total hours/yr, the gift you give your employer when you work 48 for 40.
Default working weeks = 47: 52 weeks − ~2 weeks PTO − ~1 week holidays/sick buffer. 401(k) match and employer-paid premiums are real money, a high-deductible junk plan deserves a low number.
Why is my hourly rate so much lower than my salary divided by 40?
Because salaried jobs quietly raise the denominator. Working 48h/week with a 4h commute drops a $90k salary from $43.27/h to about $32.20/h, a 25% pay cut that never shows on a payslip.
Should benefits really count as money?
Yes, an employer-paid family health premium is $8,000–15,000/yr of money you'd otherwise spend. Leave it at 0 if your plan is bad; the tool works both ways.
Does commute time count as work?
It's time the job takes from your life, at the same rate everything else at that hour costs. The "after commute cost" row shows the version where only the money is netted and hours stay at work-only.