This guide explains the core arithmetic behind the tools. It is intended to help you check assumptions and understand your own pay records, not to provide jurisdiction-specific legal advice.
Annualize the hourly offer
Multiply the hourly wage by paid weekly hours and paid weeks per year. At $23 per hour, 40 hours each week and 50 paid weeks, gross annual earnings are $46,000.
Convert salary back to hours
Divide annual gross salary by expected working hours for the year. A $52,000 salary with a 45-hour workweek for 52 weeks works out to approximately $22.22 per hour, not $25.
Account for the whole day
Commuting and unpaid preparation consume time even if they do not appear on a payslip. The True Hourly Rate Calculator can illustrate the effective return for your entire work-related time.
Compare like for like
Health insurance, holidays, retirement contributions, irregular overtime, bonus uncertainty and career progression may affect the decision. Calculators clarify one part of the comparison; they do not replace a full offer assessment.