How to Calculate Your Real Hourly Wage

Compare pay using the hours and weeks you will actually be paid for.

Use the Hourly Wage Calculator alongside this illustrative example.

A practical example

At 20 per hour for 30 hours a week over 48 paid weeks, annual gross pay is 28,800. Assuming 52 weeks instead produces 31,200, a 2,400 difference. That difference is an assumption about paid time, not a change in the hourly rate.

Check the result

Compare both roles on the same basis and list paid leave, overtime and benefits separately. A higher contractor hourly rate may need to cover unpaid administration, time between contracts and business costs.

Try a comparison

Keep the hourly rate at 20 and increase weekly hours from thirty to thirty-five over forty-eight paid weeks. Gross rises to 33,600. Compare the additional 4,800 with the additional hours required, rather than judging the annual totals alone.

What this does not establish

Gross hourly conversion does not estimate take-home pay or establish compliance with wage laws. Check the contract and pay periods before budgeting.

Report unclear guidance or a result that needs checking.