How To Calculate Hourly Rate. Calculate your hourly wage by taking your monthly base rate of pay and multiplying it by 12 -- or your bimonthly pay and multiplying it by 26. Workers paid hourly are compensated by multiplying the agreed hourly rate by the total number of hours worked in a given period eg month week or day.
Simply divide your income by the number of hours you have worked. Determining the right hourly rate is the biggest challenge for any freelancer - youre always in danger of charging too little or too much and both extremes will have a negative impact on your job prospects. Lets take a look at a few examples using base salaries ie excluding superannuation.
Please note this is based on a 40 hour work week with 52 weeks per year and 12 months per year.
To determine your hourly wage divide your annual salary by 2080. For more help like how to account for overtime and paid time off read on. Hourly Rate Yearly Salary Hours per Week Days per Week x Work Days per Year. Annual salary number of weeks in a year hours worked per week hourly rate.