How to Calculate per Diem Hourly Rate

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Per Diem Hourly Rate Calculator

This calculator helps you determine your hourly rate based on a per diem (daily) amount and the number of hours worked per day.

function calculatePerDiemHourlyRate() { var dailyRate = document.getElementById("dailyRate").value; var hoursPerDay = document.getElementById("hoursPerDay").value; var resultDiv = document.getElementById("result"); var dailyRateNum = parseFloat(dailyRate); var hoursPerDayNum = parseFloat(hoursPerDay); if (isNaN(dailyRateNum) || dailyRateNum <= 0) { resultDiv.innerHTML = "Please enter a valid daily rate greater than zero."; return; } if (isNaN(hoursPerDayNum) || hoursPerDayNum <= 0) { resultDiv.innerHTML = "Please enter a valid number of hours worked per day greater than zero."; return; } var hourlyRate = dailyRateNum / hoursPerDayNum; resultDiv.innerHTML = "Your Per Diem Hourly Rate is: $" + hourlyRate.toFixed(2); } .calculator-container { background-color: #f9f9f9; padding: 20px; border-radius: 8px; box-shadow: 0 0 10px rgba(0, 0, 0, 0.1); max-width: 500px; margin: 20px auto; font-family: Arial, sans-serif; } .calculator-container h2 { text-align: center; color: #333; } .input-group { margin-bottom: 15px; } .input-group label { display: block; margin-bottom: 5px; color: #555; font-weight: bold; } .input-group input[type="number"] { width: calc(100% – 22px); padding: 10px; border: 1px solid #ccc; border-radius: 4px; } .calculator-container button { background-color: #0073aa; color: white; padding: 10px 15px; border: none; border-radius: 4px; cursor: pointer; font-size: 16px; display: block; width: 100%; } .calculator-container button:hover { background-color: #005a87; } .result { margin-top: 20px; padding: 15px; background-color: #e9eff3; border: 1px solid #c3d9e5; border-radius: 4px; text-align: center; font-weight: bold; color: #333; }

Understanding Per Diem and Hourly Rates

The term "per diem" is Latin for "per day." In a professional context, it often refers to a daily allowance given to employees or contractors for living expenses incurred while traveling for work, or it can be a flat daily rate paid for services rendered, especially for short-term or contract work.

When you are paid a flat daily rate (per diem), it can be useful to understand what this translates to as an hourly wage, especially when comparing it to jobs that pay by the hour or when budgeting your time and income.

How to Calculate the Per Diem Hourly Rate

The calculation is straightforward:

  1. Determine the Daily Rate: This is the total amount you are paid for one day of work or the daily allowance you receive.
  2. Determine the Hours Worked Per Day: This is the number of hours you are expected to work, or typically work, to earn the daily rate. For travel per diem, it might be the standard workday hours you are away.
  3. Divide the Daily Rate by the Hours Worked: The formula is:
    Per Diem Hourly Rate = Daily Rate / Hours Worked Per Day

Example Calculation

Let's say a contractor is paid a per diem of $400 for a day's work, and they are expected to work 8 hours.

  • Daily Rate = $400
  • Hours Worked Per Day = 8
  • Per Diem Hourly Rate = $400 / 8 = $50 per hour

So, the contractor's work effectively earns them $50 per hour based on the per diem rate.

Why Calculate It?

  • Comparison: To compare compensation between per diem jobs and hourly-paid jobs.
  • Budgeting: To understand the value of your time on an hourly basis when paid daily.
  • Negotiation: If you are negotiating a per diem rate, understanding the implied hourly rate can be beneficial.

Use our calculator above to easily find your per diem hourly rate by simply entering your daily rate and the number of hours worked per day.

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