Work and time

Real hourly rate calculator

Your real hourly rate is monthly pay divided by all recurring time committed to the job—not only the hours printed on the contract.

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Live model

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Assumptions

template: real_hourly_rate

salary_monthly = 4500 in usd
work_hours_daily = 8
commute_hours_daily = 1
overhead_hours_daily = 1.5
workdays_per_month = 22

Inputs

What the model needs

Monthly salary: Use gross or net consistently across every option.
Work hours: The typical hours spent actively working each day.
Commute: Door-to-door travel time for a normal workday.
Overhead: Preparation, mandatory availability, admin, or recurring recovery time.
Workdays: The number of working days represented by the monthly salary.

Method

Formulas stay visible

committed_hours_daily = work_hours + commute_hours + overhead_hourscommitted_hours_monthly = committed_hours_daily × workdaysreal_hourly_rate = monthly_salary / committed_hours_monthly

The inputs and source use the same model. Open it in Continuum for a document you can keep and revisit.

Worked example

The cost of a 10.5-hour workday

$4,500 monthly salary
8 hours working
1 hour commuting
1.5 hours overhead
22 workdays

Result231 committed hours produce a real hourly rate of about $19.48.

Removing one hour of daily commute would raise the time-adjusted rate without changing salary. Time is part of compensation.

Stress-test it

Use an average across several representative weeks.
Compare remote, hybrid, and office schedules with the same salary basis.
Add recurring unpaid availability only when it genuinely constrains your time.

Use it when

Comparing roles with different schedules or commutes
Deciding whether a raise compensates for longer hours
Understanding the time cost of a return-to-office policy

Know the boundary

Benefits, taxes, career growth, and job security require separate assumptions.
Not every personal activity around work should automatically be counted as overhead.
The result measures time economics, not whether a role is worthwhile overall.

Questions

Should commute time count as work time?

For a personal decision model, it counts as time the role requires from your day even if an employer does not classify or pay it as work.

Should I use gross or net salary?

Either can be useful. Use the same basis when comparing roles and label it clearly so the result is not mistaken for after-tax pay.

What belongs in work overhead?

Include recurring time such as preparation, required admin, or mandatory availability. Avoid padding the model with occasional events unless you average them.

Keep the reasoning

Turn this example into
your living model.

The full template opens as a local Continuum document. Edit every assumption, explore the result breakdown, and keep the source.

Open real hourly rate calculator

Real hourly rate calculator

What the model needs

Formulas stay visible

Stress-test it

Use it when

Know the boundary

Turn this example intoyour living model.

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