Hourly Rate Calculator

Hourly Rate Definition

An employee who wants to make sure that he or she receives the right gross earnings on paychecks can take advantage of using an online hourly rate calculator. Whether the employee receives a weekly, bi-weekly or monthly paycheck, this calculator is simple to use.

Enter Hourly Earnings

In order to use this handy calculator, the person needs to know the amount of his or her hourly wage. This information is found on the employee’s paycheck stub. The next step is to enter this amount into the online calculator’s Hourly Wage box.

Enter Number of Hours

Then, the employee enters the number of hours worked into the Hours box. The calculator has a drop-down menu that provides an option to enter either the hours worked per week or per month.

• Enter the Hourly Wage Amount
• Enter the Number of Hours
• Specify Whether the Hours are Per Week or Per Month

If a person receives a bi-weekly paycheck, the individual can simply multiply the total weekly earnings times the number 2.

• Bi-Weekly Paycheck: Multiply Weekly Hours Times 2

Remember to Include Overtime Wages

Sometimes, employees receive overtime pay. The hourly rate calculator has an option that allows the person to enter a monthly overtime rate at the standard 1.5  times the number of overtime hours worked.

Enter Double Overtime Earnings

Some employees receive double earnings when they work on Sundays or holidays. The convenient online calculator has the option of calculating the monthly overtime rate at 2 times the number of overtime hours worked.

• Enter the Number of Hours Worked at regular pay.
• Enter monthly hours worked at overtime rate of 1.5
• Enter monthly hours worked at overtime rate of 2.

The employee can then find out the correct earnings for regular hourly wages combined with overtime earnings.

Follow These Simple Steps

1. Enter the regular hourly wage.
2. Enter the total number of hours worked.
3. Pick a Weekly or Monthly option.
4. Enter the monthly overtime rate at 1 percent.
5. Enter the monthly overtime rate at 2 percent.

Enter all Figures One Time to Receive the Correct Total Amounts

When using the hourly rate calculator, it is not necessary to enter figures several times. The employee only needs to enter all of the numbers one time in order to receive a detailed summary of the correct gross earnings.

Select Single or Married Status

After all of the numbers are entered into the calculator, the person then needs to select whether he or she is a single person or a married individual. Status is important because taxes are calculated differently depending upon whether an employee is single or married.

Find the Correct Tax Filing Status in the Drop-Down Box

The Status box gives the user an option to choose one of four different status categories found in the drop-down box.

• Single
• Married Joint
• Married Separate
• Head of Household

Choose the Number of Dependents

The next step is to enter the total number of dependants in the Number of Dependants box. An employee can choose from zero to six dependants. For example, if the employee has three children, then he or she chooses the number 3 from the drop-down menu.

• Enter the Number 0 if the Employee Does Not Have Any Dependents
• Select the Number 1 if the Employee has One Child
• Select the Number 3 if the Employee has Three Children
• Select the Number Six if the Employee Has Four Children

Enter Other Monthly Deductions and Output

If the employee has any other deductions taken out of the paycheck, the calculator has an Other Monthly Deductions box. Other deductions may include insurance deductions, transportation costs or any other types of deductions the employer deducts from the employee’s paycheck. The employee can also select the yearly, monthly, weekly or daily Output from a drop-down menu.

Be sure to check out similar financial calculators like the Salary to Hourly calculator and the Hourly Paycheck Calculator

How to Calculate Hourly Rate

Let's be honest - sometimes the best hourly rate calculator is the one that is easy to use and doesn't require us to even know what the hourly rate formula is in the first place! But if you want to know the exact formula for calculating hourly rate then please check out the "Formula" box above.

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