Effective Hourly Rate Calculator
Work out your true effective hourly rate by dividing total pay for a period by all hours actually worked, including unpaid extras.
Your results
Calculation breakdown
- Effective rate
- Effective hourly rate = total pay ÷ total hours actually worked
Worked example
A worker paid $1,500 for a week but who actually worked 45 hours (including unpaid overtime) has an effective hourly rate of $33.33, lower than a 38-hour contracted rate.
Assumptions
- Include all hours genuinely worked, including unpaid overtime.
- Excludes commuting time and unpaid leave.
How this calculator works
Enter your total pay for a period and the total hours you actually worked, including any unpaid overtime or extra time, to calculate your effective hourly rate. This often reveals a lower rate than your quoted hourly or annualised rate when unpaid extra hours are common.
Frequently asked questions
Why would my effective rate be lower than my contracted rate?
If you regularly work unpaid extra hours, the same pay is spread across more hours, lowering your effective hourly rate.
Should I include commute time?
No, only include hours you are actually working, not travel time to and from work unless your role specifically pays for it.
Is this useful for salaried employees?
Yes, it is especially useful for salaried staff who regularly work extra unpaid hours beyond their contracted week.
Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.