What is True Hourly Rate?
Your true hourly rate accounts for all work-related time including commute and unpaid overtime, not just paid work hours. It shows what you really earn per hour and helps evaluate purchases or opportunities.
How to Calculate Your True Hourly Rate?
Divide your annual income by total work-related hours per year, including paid work, commute time, unpaid overtime, and work preparation. For example, if you earn Rs 12,00,000 annually but spend 60 hours per week on work-related activities, your true rate is significantly lower than your nominal rate.
Should I Include Commute Time?
Yes, commute time is work-related time. You cannot work elsewhere or use it for personal activities during commute. Including it gives you an accurate picture of your time investment.
Frequently Asked Questions
Why does true hourly rate matter?
It shows what you really earn per hour and helps determine whether purchases or opportunities are worth your time investment.
How can I use this calculator for decision making?
Use your true hourly rate to evaluate purchases, decide if outsourcing tasks makes sense, and compare job offers with different commutes.
What is considered unpaid work time?
Unpaid work includes overtime without compensation, work preparation time, professional development required by employer, and checking emails outside work hours.