TabSalary calculator guide
How to calculate your true hourly wage
A posted hourly rate counts paid work time but often ignores the unpaid time and out-of-pocket costs required to hold the job. This calculator converts those costs into a comparable hourly figure so you can evaluate job offers, hybrid schedules, and commute tradeoffs on the same basis.
Written by the TabSalary editorial team · Last reviewed July 21, 2026
How the calculation works
True hourly wage = (weekly gross pay − weekly job costs) ÷ (paid hours + unpaid commute hours)
- Multiply the stated hourly rate by weekly paid hours to estimate gross weekly pay.
- Convert annual work expenses to a weekly amount and add five days of commute costs.
- Convert the daily round-trip commute to weekly hours and add it to paid work time.
- Subtract job costs from gross pay, then divide by all job-related hours.
Worked example
At $25 per hour for 40 paid hours, gross weekly pay is $1,000. A 60-minute daily commute adds five unpaid hours. With $10 per day in commuting costs and $500 per year in work expenses, the comparison rate is materially lower than the stated $25. That difference is useful when comparing a nearby role with lower headline pay against a farther role with higher pay.
What this estimate does not include
- Income and payroll taxes, employer benefits, bonuses, overtime rules, and paid leave are not modeled.
- Commute time is valued only through the denominator; the calculator does not assign it a separate personal value.
- Work expenses should include only costs you would not otherwise incur, and estimates should use a typical week.
Use the result as a planning estimate, not as personalized financial, tax, legal, or investment advice.