How to Calculate Per Hour Rates

by Michael Keenan; Updated September 26, 2017
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Calculating per hour rates can help you set a common metric for comparison. For example, if you are an employee who works on salary, you might want to calculate the hourly rate that your salary equates to. You can also find the production rates for different facilities. If two plants produce widgets, you can compare the number of widgets they produce each hour to see which one is more efficient.

Step 1

Identify the total amount you want to measure by the hour. For example, if you’re looking at your hourly rate as a salaried employee, you’d use your weekly salary. If you’re measuring production at a plant, look at the number of products it produces in a week – say, 1,000 widgets per week.

Step 2

Figure the total number of hours spent on the task. Calculate the average number of hours you work each week to figure out what you earn per hour if you’re looking at your salary, or look at the number of hours the plant runs in a week.

Step 3

Divide the total by the number of hours spent on the task to find the per hour rate. If you earn $840 per week in salary and work 60 hours each week, divide $840 by 60 to find the per hour rate equals $14. If the plant runs for 40 hours to produce 1,000 widgets, divide 1,000 by 40 to find that it produces 25 widgets per hour. If another plant runs 50 hours to produce 1,200 widgets, divide 1,200 by 50. That plant produces 24 widgets per hour.

About the Author

Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

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