How to Calculate Your Hourly Rate

Step-by-Step Guide

1. 1

   Step 1: Keep track of how many hours you've worked.

   For this to be helpful, you'll need to decide what your pay period is.
   
   You can figure out your hourly rate based on an annual income, for a more accurate figure, or you find your hourly rate for a specific job or time period.
   
   For example, if you get paid by the job or project, you may just want to keep track of the hours for that project to determine your hourly rate for that job.
   
   Or you can determine your hourly rate for a shorter period of time, such as a month or a few weeks.
2. 2

   Step 2: Calculate your income.

   Keep track of your paychecks.
   
   Be sure to use the same pay period that you selected to figure up hours.
   
   Again, this could be for a single project or several paychecks.
   
   You can choose whether or not to include taxes in your calculations.
   
   Note that if you don't include taxes, your hourly rate will appear higher. , This will give you your hourly rate, based on the project or time period you selected.
   
   Income / Hours = Hourly Rate Example: $15,000 / 2114 = $7.10 per hour You can check your results against this salary converter, which also allows you to correct for several different variables.
3. 3

   Step 3: Divide your income by your hours.

Detailed Guide

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