Personal Finance
Effective Hourly Wage Calculator
Start from salary or take-home, then add unpaid overtime, commute and other work hours.
What do you really earn per hour?
The salary on an offer letter is not the rate you earn for every hour of your week. Unpaid overtime, long commutes, mandatory evening events and quick weekend emails all dilute the true hourly return. This calculator divides what you take home (or your gross pay, if you prefer) by the hours you actually give the job, including travel if you treat commute as work time. The result is a reality check when comparing a salaried role with freelance day rates, overtime offers, or a shorter commute at slightly lower pay. It is not a legal minimum-wage calculation and does not replace advice from ACAS, a union or an employment solicitor. For converting headline pay formats, see salary to hourly and day rate to salary. Estimates only — not tax or employment advice.
Worked example
£42,000 salary with 37.5 contracted hours looks like about £21.50 an hour before tax. Add five unpaid overtime hours and five hours of commuting each week (47.5 hours total) and the effective rate before tax falls to roughly £17.00. After a commute change that saves six hours a week, the same salary feels closer to £20.50 effective — often worth more than a small pay rise that adds travel.
Limits and assumptions
Benefits, pension match and holiday are not monetised unless you fold them into pay. Hybrid weeks vary; use a typical week or an annual-hours average. Student loan and tax bands mean take-home is not a flat percentage of salary.
Frequently asked questions
Should I use gross or take-home pay?
Gross is better for comparing job offers; take-home is better for budgeting. Be consistent across roles you compare.
Do I count lunch breaks?
Count unpaid lunch only if you cannot use that time freely. Paid breaks usually stay in contracted hours.
How should I treat a hybrid commute?
Average the hours across a typical fortnight. Two long office days and three WFH days still dilute the weekly rate.
Is this the same as minimum wage checks?
No. National Minimum Wage rules have specific definitions of working time. This tool is for personal comparison only.
How does overtime change the picture?
Paid overtime raises effective pay; unpaid overtime lowers it. Model both with the overtime pay calculator where relevant.