Common questions about the true hourly rate calculator, answered directly.
Your true hourly rate is your take-home pay divided by all hours your job actually requires — including unpaid overtime, commuting, prep time, and decompression — minus all work-related expenses. It tells you what you actually earn per real hour of your life.
The calculator uses net income (after tax) because that's what you actually take home. Gross income overstates what a job really pays you.
Any expense you wouldn't have if you didn't work: commuting costs (gas, transit, parking), work clothing beyond everyday wear, work lunches above what you'd spend at home, childcare needed because of work hours, professional dues, and tools required for the job.
Your effective rate is total taxes paid divided by gross income — not your marginal bracket. A rough guide: $50k salary ≈ 18% effective, $75k ≈ 22%, $100k ≈ 24%, $150k ≈ 28%. Include federal + state together.
Yes — commuting is time your job requires that you're not paid for. A 30-minute each-way commute on 5 days/week adds 5 hours/week of unpaid job-related time, meaningfully reducing your effective hourly rate.
There's no universal benchmark — it depends entirely on your field, location, and lifestyle costs. What matters more is comparing it to alternative opportunities or using it to evaluate whether a specific purchase is worth X hours of your life.
Use the true hourly rate calculator — free, no email required.