Lifestyle

Your true hourly wage

The "salary ÷ 2,080 hours" number is a fantasy. Count the unpaid overtime, the commute and what work costs you, and your real hourly wage looks different.

People translate a salary to an hourly rate by dividing by 2,080 hours, 40 a week, 52 weeks. Real work isn't like that: there's unpaid overtime, the commute you don't get paid for, and the money it takes just to show up. Count all of it and your true hourly wage is lower, often a lot lower, than the headline figure.

Hours worked beyond contract with no extra pay.

Commuting, lunches, wardrobe, parking.

Enter your salary and real hours.

Worked example

A $90,000 salary, 40 contracted hours plus 6 unpaid overtime and 5 commuting, $6,000 of work costs:

MeasureValue
Nominal hourly (salary ÷ contracted hours)$47
Real hours a year2,448
Real hourly wage$34
The gap$13/hr (26.8% less)

On paper that's $47 an hour. Count the overtime, the commute and $6,000 of work costs, and it's really $34, 26.8% less. That gap is the honest price of the job, and the number to use when weighing a shorter commute or a role with real boundaries.

Questions

Why count the commute?

Because it's time you spend for the job that you can't spend on anything else, and it costs money too. A shorter commute is effectively a raise in your true hourly wage, sometimes a bigger one than a modest salary bump.

What are "work costs"?

Everything you spend to hold the job: commuting (gas, transit, parking), lunches out, work-appropriate clothes, and the like. They come out of your pay before it does anything for you, so they belong in a true hourly figure.

How do I use this?

To compare jobs honestly. A higher salary with a brutal commute and constant unpaid overtime can pay less per real hour than a lower salary with boundaries. The real hourly wage puts the two on the same footing.

Related tools

A framing tool from your own inputs, not tax or financial advice.