Real Hourly Wage Calculator for Calculating Your True Income Per Hour

Real Hourly Wage Calculator Sign

This online Real Hourly Wage Calculator will calculate your after-tax, after-work-related-expense income from each hour you allocate to your job.

Plus, the calculated results include an interactive form wherein you can enter the purchase price of any item, and the form will instantly tell you how many hours you will need to allocate to work to earn the after-tax, after-work-related expense income needed to pay cash for the purchase.

Finally, the RHW calculator also includes a printer-friendly Real Hourly Wage Report that you can print out and carry with you to remind you what you are exchanging for goods and services. It's not money, it's your time!

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Real Hourly Wage Calculator

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Take Home Pay
Take-home:Take-home pay:Take-home pay per period:Take-home pay per pay period:

Take-home pay per pay period:

Enter your take-home pay per pay period. Be sure to add back any withheld funds that will be returned to you later (retirement withholdings, etc), as well as any expenses your employer is paying on your behalf (health insurance, etc.).

$
Pay period:Pay period:Pay period interval:Pay period interval:

Pay period interval:

Select your pay period interval from the pull down menu. Note that bi-weekly means you get paid every two weeks, whereas semi-monthly means you get paid twice per month.

Time Allocated to Work
Days/prd:Days per period:Workdays per period:Number of workdays per pay period:

Number of workdays per pay period:

Enter the average number of days you work per pay period.

#
Pd hrs/day:Paid hours/day:Paid hours per day:Number of paid work-hours per workday:

Number of paid work-hours per workday:

Enter the number of hours you are actually paid for per workday. If you work from 8-5, with a half-hour, unpaid break for lunch, you would enter 8.5. Be sure to include any consistent overtime hours as well.

#
Unpd mins:Unpaid minutes:Unpaid minutes per workday:Minutes of unpaid breaks per workday:

Minutes of unpaid breaks per workday:

Enter the average number of minutes of unpaid breaks per workday. If you usually arrive early for work, be sure to include those minutes as well.

#
Travel mins:Travel minutes:Commute minutes per workday:Minutes of commute time per workday:

Minutes of commute time per workday:

Enter the number of minutes you spend commuting to and from work per workday.

#
Prep mins:Prep minutes:Minutes preparing for work:Minutes getting ready for work per workday:

Minutes spent getting ready for work per workday:

Enter the number of minutes you spend getting ready for work each workday. Also include any minutes spent unwinding/changing once you get home from work.

#
Unreimbursed ExpensesUnreimbursed ExpensesUnreimbursed, Work-Related ExpensesUnreimbursed, Work-Related Expenses
Miles/day:Miles/workday:Work miles per workday:Miles you drive your car per workday:

Number of miles you drive your car per workday:

Enter the average number of work-related miles you drive your own car per workday. Be sure to include any miles driven to and from lunch. The calculator will calculate your cost at 55-cents per mile.

#
Fares/day:Fares/workday:Fares, fees and tolls:Fares, fees, tolls per workday:

Other transportation costs per workday:

Enter any other work-related transportation costs per workday, such as fares, parking fees and tolls.

$
Sitter/prd:Daycare/period:Daycare expenses per pay period:Your share of daycare expenses per pay period:

Your share of daycare expenses per pay period:

Enter your share of daycare costs per pay period if both spouses work. Or, enter the entire daycare cost if you are single or if quitting work would mean you would have no daycare costs.

$
Dine/day:Dine/workday:Dining out per workday:Dining out expense per workday:

Dining out expense per workday:

Enter the average amount you spend on work-related dining-out per workday. Be sure to include the tips! The calculator will compute costs at 66% of the total (average restaurant mark-up).

$
Cloth/mon:Clothes/month:Clothing expenses per month:Unreimbursed clothing expenses per month:

Unreimbursed clothing expenses per month:

Enter the average amount spent on non-reimbursed, work-related clothing per month. Be sure to include any dry-cleaning costs that might apply.

$
Dues/prd:Dues/period:Union dues per period:Union dues per pay period:

Union dues per pay period:

Enter any union or professional dues that you must pay per pay period to maintain your employment.

$
Gifts/month:Gifts/month:Office gifts per month:Office gifts per month:

Office gifts per month:

Enter the average amount you spend each month on work-related gifts, office parties, etc..

$
Monthly net:Monthly net pay:Monthly take home pay:Monthly take home pay:

Monthly take home:

This is your calculated monthly take-home pay.

$0.00
Month exp:Monthly exp:Monthly work expenses:Monthly work-related expenses:

Monthly work-related expenses:

This is the calculated total of all of your monthly work-related expenses.

$0.00
Profit:Monthly profit:Monthly net-profit:Monthly net-profit:

Monthly net-profit:

This is the what is left after subtracting your monthly work-related expenses from your monthly take-home pay.

$0.00
Month hrs:Monthly hours:Monthly work-related hours:Monthly work-related hours:

Monthly work-related hours:

This is the calculated total number of hours you are allocating to work on a monthly basis.

0
Profit/hr:Profit per hour:Real hourly wage:Real hourly wage:

Real hourly wage:

This is result of dividing your monthly net profit by the number of hours you are allocating to work each month.

$0.00
Purchase price:
$
Work Time Allocation Required
Hours:0
Work days:0
Work weeks:0
Work months:0
Work years:0

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Learn

Life's a ... Business! What RHW is, why it's important, and how to calculate it.

Life's a ... Business!

Whether you realize it or not, your life is a business just like any other business.

After all, your life shares the following traits with traditional businesses:

Product: Your talents, abilities and skills.

Sales & Marketing: Selling your talents, abilities and skills to employers or customers.

Finance & Accounting Department: Budgeting and forecasting your household income an expenses, paying accounts payable, etc.

Research and Development: Furthering your education and improving your skill set.

Stockholders: Members of your household who stand to gain or lose from your decisions.

There is only one major difference between your life business and traditional business.

While traditional businesses are engaged in the pursuit of monetary profits (more revenues than expenses), your life business is engaged in the pursuit of happiness profits (more good feelings than bad feelings), or at least it should be.

If you are chasing after monetary profits, it's likely at the expense of your happiness profits. But that's a topic for another discussion.

Revenues Do Not Equal Profits

If you agree that your life is a business, then aside from the obvious question (is your life business successful?), it's important to recognize that revenues (monies received) do not equate to profit.

Profit is what's left after you deduct all revenue-generating expenses. As this relates to your life business, to place a profit value on one hour's worth of your time, you must account for any work-related expenses, which will leave you with what I call your Real Hourly Wage (RHW).

Benefits of Knowing Your RHW

Knowing your RHW has several benefits:

Benefit #1: Knowing your RHW allows you to compare one revenue-generating scenario with another more accurately. For example, one opportunity might pay more than the other, but require more gas and commute time.

Benefit #2: Being fully aware of your RHW will allow you make more prudent buying decisions, but only if you take the time to calculate how many hours you will need to allocate to working to make each purchase. The Real Hourly Wage Calculator will help you to do that as well.

Benefit #3: Once you've used the Real Hourly Wage Calculator for calculating your RHW you should discover that you can increase your RHW simply by trimming the costs associated to your work. These cost-trimming measures might include opting for bag lunches instead of dining out every day, carpooling or public transportation, and so on.

The bottom line is this. Your life is a business. Successful traditional businesses take the time to accurately forecast the monetary revenues and expenses of their decisions before they make them.

Knowing and staying fully aware of your RHW will help you to more accurately forecast the emotional revenues and expenses of your decisions before you make them. After all, if the time you allocate to work is generating emotional losses, you will need to be very fussy when it comes to exchanging that time (money) for goods and services that will yield enough emotional revenues to offset those losses.

How to Calculate Real Hourly Wage.

To calculate your true hourly wage, you will use the following real wage rate formula:

(A) Total After-Tax Income
Plus
(B) Value of Benefits Paid By Employer
Minus
(C) Work-Related Expenses Paid By You
Divided By
(D) Total Hours Allocated to Earning Income A

Formula Variable Definitions

(A) Total After-Tax Income: Total income paid by your employer for a given pay period, less Federal, State, Local, Social Security, and Medicare taxes withheld from your paycheck.

(B) Value of Benefits Paid By Employer: This would include benefits such as health insurance, 401K matching contributions, paid time off, company stock options, etc.

(C) Work-Related Expenses Paid By You: This would include expenses such as child care, dry cleaning of required work attire, work commute, dining out, office gifts, etc.

(D) Total Hours Allocated to Earning Income: This would include time spent working, unpaid breaks, getting ready for work, unwinding from work, commuting to and from work, escaping from work, etc.

Of course, the easiest way to calculate your true hourly wage rate is to use the RHW calculator on this page.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.