## Real Hourly Wage Calculator

So your boss told you that you were getting paid \$10 an hour? Don't believe it! This calculator will show you how much you're REALLY profiting (after-tax, after work-related-expense takehome) from each hour you devote to working -- both paid and unpaid. But wait! Before you approach your boss with this startling computation, make sure you see both sides. You know, your boss's "side" and the "outside!" ;-)

 Take Home Pay Enter your takehome pay per pay period: Number of pay periods per year: Time Allocated to Work Enter number of workdays per pay period: Enter number of paid workhours per workday: Enter minutes of unpaid breaks per workday: Enter minutes of work-related commute time per workday: Enter minutes spent getting ready for work per workday: Unreimbursed, Work-Related Expenses Number of work-related miles you drive your own car per workday: Calculator computes cost at 55 cents per mile. Other work-related transportation costs per workday: Fares, tolls, parking fees, etc. Your share of daycare expenses per pay period: Or entire daycare if not working would eliminate it completely. Dining out expense per workday: Calculator computes cost at 66% of purchase (amount above actual cost of food). Unreimbursed work-related clothing expenses per month: Union Dues per pay period: Office gifts (birthdays, showers, etc.) per month: Results Monthly TakeHome: Monthly Work-Related Expenses: Monthly Net-Profit: Monthly Work-Related Hours: Real Hourly Wage: Money to Time Conversion: Enter the purchase price of any item: Be sure to include sales-tax and any finance charges that might apply. Based on your Real Hourly Wage, this is how many hours you will have to allocate to working in order to pay for the above purchase price (Hope you enjoy your work!):

### Work Related Expenses

Work related expenses can have a major impact on a person's hourly wage, and some can be more difficult to calculate than others. Taxes are a constant for everyone earning an hourly wage, and most of us make allowances for them when anticipating our next paycheck. But other expenses can be more subtle, and can escape the attention of even the most vigilant worker. The following are some of the more common work related expenses that can seriously impact a person's earnings:

• Taxes – Federal income and social security taxes take up a large portion of a person's earnings. While these are typically deducted from your paycheck, they do have an impact on your actual hourly wage. In some areas of the country, state income tax will also reduce a worker's real hourly wage.
• Commuting – Travel to and from work costs money, both in fuel and in wear and tear on your vehicle. These costs often get overlooked, but in extreme cases they can seriously impact a person's wage profile.
• Child Care – 40+ hours of child care a week reduces a worker's real hourly even further, sometimes by as much as \$3.50 an hour.
• Clothing Expenses – Some jobs require workers to purchase and wear uniforms, and these clothing costs will further reduce a person's real hourly wage.

### Work Related Benefits

It's not all bad news, however. There are work related benefits that can increase a worker's real hourly wage. For example, if your job provides health insurance this value added service actually adds to your actual hourly wage. The same holds true for life insurance. Likewise, if your employer offers retirement benefits, or matches your 401(k) contributions this also adds to the actual hourly wage. Finally, bonuses and vacation pay also help to boost your bottom line.

### Calculating Your Real Hourly Wage

Knowing your real hourly wage can be invaluable. First and foremost it will help you to better manage your money by illustrating the impact work related expenses can have on your income. Secondly, it can aid in a job search. If you are considering changing jobs, understanding the real value of each wage being offered can help you make an informed decision. For example, if the new employer offers a higher technical wage, but the work related expenses are also higher, switching jobs may not make sense financially. Use the Real Hourly Wage Calculator to better understand the relationship between your income and your work related expenses.