Weekly to Hourly Pay Calculator
Your Estimated Hourly Rate
How to Calculate Hourly Rate from Weekly Pay
Understanding your hourly worth is essential for budgeting, comparing job offers, or determining if you are being paid fairly for overtime. While many employees think in terms of their weekly or monthly salary, most labor laws and payroll systems operate on an hourly basis.
The Basic Formula
The mathematical formula to convert your weekly earnings into an hourly wage is straightforward:
Step-by-Step Example
Suppose you earn a gross salary of $1,200 per week and you work a standard 40-hour work week.
- Step 1: Identify your gross weekly pay (before taxes): $1,200.
- Step 2: Identify your total hours worked: 40 hours.
- Step 3: Divide $1,200 by 40.
- Result: Your hourly rate is $30.00.
Important Considerations
- Gross vs. Net Pay: Always use your "Gross Pay" (the amount before taxes and insurance are deducted) if you want to know your official pay rate. If you use your "take-home pay," you are calculating your net hourly earnings.
- Unpaid Breaks: If you are at work for 9 hours but have a 1-hour unpaid lunch, you should only divide by 8 hours to find your true rate for time spent working.
- Overtime: If your weekly pay includes overtime at "time and a half," the simple division method will give you a "weighted average" rather than your base hourly rate. To find your base rate in this scenario, subtract the overtime premium first.
Why This Matters
Converting weekly pay to hourly is particularly useful for freelancers and contractors who need to set rates for new projects based on their previous employment income. It also helps salaried employees understand how much they are "losing" when they work unpaid overtime, as more hours worked directly decreases the effective hourly rate.