How to Calculate Your Real Hourly Wage
“We don’t earn as much as we think we do. You may be paid $15 an hour, but your real hourly wage is less than that. Possibly much less. Let’s say we have a friend named Joe and that he’s a plumber making about $48,000 a year for a 40-hour workweek. His nominal wage is approximately $24 per hour. Ah, but it’s not that simple. Joe’s real hourly wage isn’t $24 — it’s something lower, when you account for the hidden expenses associated with the job. Not only is knowing your real hourly wage useful in terms of budgeting both your time and money, but it’s also a great tool for comparing prospective jobs. Even two jobs that offer the same salary in different neighborhoods and cities can have big differences in terms of real hourly wage.”
via WikiHow
