How this number is made
A job’s hourly rate ignores the time and money spent getting there. This page subtracts the commute cost from take-home and divides by hours on the job plus hours in transit.
- Take-home is after tax, for one week.
- Commute cost is fuel, fares, or parking. The car payment you would have anyway is a judgment call. Leave it out if you would own the car regardless.
Formula
True hourly = (weekly take-home − commute cost) ÷ (job hours + commute hours).
Worked example
With the figures already in the form, take-home per hour including the commute is $18.67.
Questions
Do I include unpaid lunch?
If you cannot use the lunch hour, it is time the job takes. Add it to hours on the job if that is your view. The default does not.
Is a remote job infinite?
If both commute fields are zero, the rate is take-home divided by job hours.