function toggleInputs() {
var mode = document.getElementById('calcMode').value;
var amountLabel = document.getElementById('amountLabel');
var hoursLabel = document.getElementById('hoursLabel');
var weeksGroup = document.getElementById('weeksGroup');
var dailyRow = document.getElementById('dailyRow');
if (mode === 'salary') {
amountLabel.innerText = "Annual Salary Amount ($)";
hoursLabel.innerText = "Hours Worked Per Week";
weeksGroup.style.display = "block";
dailyRow.style.display = "flex";
document.getElementById('hoursInput').value = 40;
} else {
amountLabel.innerText = "Total Project Fee ($)";
hoursLabel.innerText = "Total Hours Spent on Project";
weeksGroup.style.display = "none";
dailyRow.style.display = "none";
document.getElementById('hoursInput').value = "";
}
}
function calculateRate() {
var mode = document.getElementById('calcMode').value;
var amount = parseFloat(document.getElementById('totalAmount').value);
var hoursInput = parseFloat(document.getElementById('hoursInput').value);
var weeks = parseFloat(document.getElementById('weeksPerYear').value);
if (isNaN(amount) || amount <= 0) {
alert("Please enter a valid amount.");
return;
}
if (isNaN(hoursInput) || hoursInput <= 0) {
alert("Please enter valid hours.");
return;
}
var hourlyRate = 0;
var totalHours = 0;
var excelText = "";
if (mode === 'salary') {
if (isNaN(weeks) || weeks <= 0) weeks = 52;
totalHours = hoursInput * weeks;
hourlyRate = amount / totalHours;
excelText = "=Salary / (HoursPerWeek * " + weeks + ")";
document.getElementById('resDailyRate').innerText = "$" + (hourlyRate * 8).toFixed(2);
document.getElementById('resTotalHours').innerText = totalHours.toLocaleString();
document.getElementById('annualRow').style.display = 'flex';
} else {
// Project mode
totalHours = hoursInput;
hourlyRate = amount / totalHours;
excelText = "=ProjectFee / TotalHours";
document.getElementById('annualRow').style.display = 'none';
}
document.getElementById('resHourlyRate').innerText = "$" + hourlyRate.toFixed(2);
document.getElementById('excelFormulaText').innerText = excelText;
document.getElementById('resultBox').style.display = "block";
}
How to Calculate Rate Per Hour in Excel
Calculating your hourly rate in Excel is a fundamental skill for freelancers, HR managers, and employees looking to understand the value of their time. Whether you are converting an annual salary to an hourly wage or determining the profitability of a specific project, Excel provides simple formulas to automate this math.
Method 1: Converting Salary to Hourly Rate
The most common scenario is converting an annual salary into an hourly wage. The standard formula assumes a set number of hours worked per week over the course of a year (typically 52 weeks).
The Formula Logic
To find the rate per hour, you divide the total salary by the total number of working hours in the year.
Hourly Rate = Annual Salary / (Hours per Week × Weeks per Year)
Excel Implementation
Set up your Excel sheet with the following columns:
Cell
Value (Example)
Description
A2
65000
Annual Salary
B2
40
Hours per Week
C2
52
Weeks per Year
D2
=A2/(B2*C2)
Resulting Rate
Type =A2/(B2*C2) into cell D2. In this example, the result would be approximately $31.25 per hour.
Method 2: Calculating Billable Rate for a Project
If you are a freelancer working on a fixed-fee project, you need to calculate your effective hourly rate to gauge profitability. This helps you determine if the time spent justified the fee.
The Formula Logic
Hourly Rate = Total Project Fee / Total Hours Logged
Excel Implementation
If you track your time using a format like "HH:MM" in Excel, calculation can be tricky because Excel stores time as a fraction of a day. You must convert the time format into a decimal number.
Scenario A: Hours are already decimals (e.g., 5.5 hours)
A2 (Fee): $500
B2 (Hours): 5.5
Formula:=A2/B2
Result: $90.91/hr
Scenario B: Hours are in Time Format (e.g., 5:30)
Excel stores "5:30" as approximately 0.23 (because it is roughly 23% of a 24-hour day). To calculate rate per hour correctly, you must multiply the time cell by 24.
A2 (Fee): $500
B2 (Time Worked): 5:30
Formula:=A2/(B2*24)
By multiplying B2 by 24, "5:30" converts to "5.5", allowing the division to work correctly.
Common Mistakes to Avoid
Ignoring Unpaid Time: When calculating freelance rates, remember that 52 weeks includes holidays and sick days. A safer calculation for freelancers often uses 48 or 50 weeks.
Time Format Errors: Always check if your hours are entered as decimals (Base 10) or time duration (Base 60). Dividing money by a raw time serial number without converting it will result in an incorrectly inflated rate.
Overtime: If you are calculating payroll, ensure you separate standard hours from overtime hours if different rates apply.
Conclusion
Using Excel to calculate your rate per hour allows for quick adjustments. By setting up a simple spreadsheet with the inputs shown above, you can instantly see how changes in your work week or fee structure affect your bottom line. Use the calculator at the top of this page to verify your Excel formulas.