Hourly Rate Calculator

Hourly Rate Calculator

Two calculators in one. Work out the hourly rate you actually earn from any pay and the hours it really took, or find the true cost per productive hour of an employee once employer taxes, benefits and paid leave are included.

Real hourly earningsEmployee cost per hourAny currencyLast updated: November 3, 2026

Calculate an hourly rate

What you were paid for the job or period
Gross annual salary
hours
Include unpaid extra time, admin and travel
h/week
Employee mode
days
Employee mode · UK minimum 28 days
%
Employer tax, pension, insurance, benefits (often 20–35%)

Hourly rate formulas

Your real hourly rate

Hourly rate = pay ÷ hours actually worked

Count every hour the job took, including quoting, travel, revisions and admin. A fixed-price job often pays far less per hour than it first appears.

Employee cost per productive hour

Productive hours = (52 × weekly hours) − (leave days × daily hours)
Cost per hour = salary × (1 + on-costs%) ÷ productive hours

Daily hours = weekly hours ÷ 5.

Worked examples

A 600 job that took 32 hours
  1. 600 ÷ 32 = 18.75 per hour
Employee on 40,000 a year, 40 h/week, 28 days’ leave, 25% on-costs
  1. Total cost = 40,000 × 1.25 = 50,000
  2. Productive hours = 2,080 − 28 × 8 = 1,856
  3. Cost per hour = 50,000 ÷ 1,856 = 26.94 (vs 19.23 basic hourly pay)

What are employer on-costs?

On-costExamples
Employer payroll taxesUK employer National Insurance, US FICA and unemployment taxes
Pension or retirement contributionsWorkplace pension, 401(k) match, provident fund
Insurance and benefitsHealth insurance, life cover, employer’s liability
OtherTraining, equipment, software licences, recruitment

Frequently asked questions

How do I calculate my hourly rate from a salary?

Divide the annual salary by the hours you work in a year. 40,000 ÷ (40 × 52) = 19.23 per hour. Use the Salary to Hourly Calculator for every pay period.

How much does an employee really cost per hour?

Usually 1.25–1.4 times their basic hourly pay once employer taxes, benefits and paid leave are included.

What should my hourly rate be as a freelancer?

It needs to cover your take-home pay, expenses, tax and unbillable time. The Freelance Rate Calculator works it out.

Salary to Hourly CalculatorAll pay periods Freelance Rate CalculatorSet your rate Payroll CalculatorGross to net

Results are estimates. Employer costs vary by country and contract.

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