How to calculate real hourly wage
Real hourly = (salary + bonus + match − commute costs − health costs) ÷ (work hours + commute hours)
Worked example. Your real hourly wage: $31.38 / hour.
Example inputs — Annual salary: $75,000; Annual bonus: $3,000; Employer 401(k) match (per year): $3,000; Hours worked per week: 45; Commute, round trip (minutes/day): 50; Commute costs (per month): $250; Your health insurance cost (per month): $200; Paid days off per year: 15. Starting values are illustrative.
vs $36.06/hour on paper (salary ÷ 2,080)
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Your salary divided by 2,080 hours flatters your pay. This adds bonus and 401(k) match, subtracts what the job costs you (commute and health premiums), and counts every hour the job actually takes — including extra hours and commuting — minus paid days off.
Part of these guides
Assumptions & limitations
- Results are rounded for display.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
Why is my real wage lower than salary ÷ 2,080?
Unpaid extra hours and commute time add hours, and job costs reduce what you keep, so each hour is worth less than the headline number.
Should I include taxes?
This compares jobs before tax. Taxes affect every option similarly, so leaving them out keeps comparisons simple.