How to use this result
Use the same period for every input. Weekly gross pay, weekly costs, and weekly travel time give a consistent result; mixing one daily commute with a week of earnings understates the time cost.
Enter work-related spending that helps answer your question. For a job comparison, focus on costs that change between jobs. For a personal overview, you may choose a broader allocation, as long as both options use the same basis.
The formula
Worked example
Using the example inputs loaded above:
$20.11/hr
Effective hourly wage.
Common questions
Is unpaid time being subtracted from pay?
No. It is added to the total time used to calculate the effective rate. Work costs are subtracted from the money.
Can the result be negative?
Yes. If your entered deductions and costs exceed earnings, the result shows a loss under those assumptions.
Assumptions & references
Amounts use USD. Results are planning estimates using your entries, with dollars rounded only for display. Each tool covers the model described here; it does not determine payroll or tax obligations. Read the calculation methodology.
This is arithmetic based on user-supplied assumptions; it does not use external wage or price data.
Formula version 1.0 · Reference check: September 7, 2026 · Report a calculation issue