Free pay calculator

Hourly Rate Calculator

Turn gig pay, freelance income, tips, unpaid time, and expenses into a realistic hourly rate.

Gross hourly pay
Net hourly pay
Expense tracking
Unpaid time included

Effective rate

Estimated hourly pay

Net hourly rate $22.57/hr

Gross hourly rate: $29.29/hr
Total time counted: 7 hours
Total income: $205.00
Total costs: $47.00
Net pay after costs: $158.00

Estimate only. This is not tax, legal, or employment advice.

How to use this hourly rate calculator

Enter gross pay, tips or bonuses, platform fees, expenses, paid work hours, and unpaid time required for the job. The calculator shows both gross hourly pay and net hourly pay after costs, using all time entered.

How to calculate effective hourly pay

Add all income from the job, subtract fees and expenses, then divide by the total time required. Include unpaid setup, waiting, driving, or cleanup time when it affects the job.

For gig work, the unpaid time can be the difference between a strong-looking job and an average one. Waiting for orders, driving back from a delivery area, loading equipment, or handling client messages should be counted when it is required to earn the pay.

Why gross hourly pay can be misleading

A job that looks profitable can become less attractive after fuel, platform fees, supplies, parking, or unpaid waiting time. Net hourly pay gives a clearer comparison.

Work typeCost or unpaid time to includeDecision signal

Delivery shiftFuel, tolls, parking, app downtime, and return drive.Compare net hourly pay across different zones or time blocks.

Freelance projectClient messages, setup, revisions, software, and payment fees.Raise the quote if admin time keeps erasing the headline rate.

Event or labor gigTravel, equipment loading, waiting, cleanup, and meals.Check whether the job still beats other available work.

One-time marketplace salePlatform fees, shipping supplies, postage, and listing time.Skip repeat listings that do not clear a useful net rate.

What expenses should freelancers and gig workers include?

Common costs include mileage, fuel, tolls, parking, supplies, transaction fees, equipment, software, and other job-specific costs. Keep records if you plan to use the information for taxes.

Some costs are direct job costs, while others are recurring business overhead. This calculator is best for a single shift or project; use separate records for monthly software, insurance, equipment replacement, and tax set-asides.

Common hourly rate mistakes

Common mistakes include counting only paid time, ignoring the return trip, forgetting platform fees, or comparing a gross freelance rate to a W-2 hourly rate without benefits and taxes. The net rate is the better number for deciding whether the work is worth repeating.

If the rate looks too low, test whether the problem is the pay, the expenses, the unpaid time, or the distance involved. Each one suggests a different fix.

Hourly rate FAQ

Why include unpaid time? Prep, waiting, driving, and cleanup can change whether a job is actually worthwhile.

Does this include taxes? No. It focuses on pay after direct job costs. Use the 1099 Tax Calculator for a separate federal tax estimate.

Should I include benefits? If you are comparing gig work with a W-2 job, remember that paid time off, insurance, retirement match, and payroll tax treatment can matter as much as the hourly number.