PaycheckHours

Average Hourly Rate Calculator

Add up the pay from every rate, then divide by all the hours worked. 30 hours at $16 and 10 hours at $22 is $480 + $220 = $700 for 40 hours, so the average is $17.50 an hour, not the simple average of $19.

Rates and hours

Your average

Average hourly rate
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Total hours
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Total pay
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Simple average (for comparison)
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Under US federal law, when one employer pays you different rates for different work in the same workweek, your regular rate for overtime that week is this weighted average.

How it works

Average hourly rate = (rate 1 × hours 1 + rate 2 × hours 2 + …) ÷ (hours 1 + hours 2 + …). This is a weighted average: hours worked at each rate count in proportion.

Worked examples

  1. 30 hours at $16 and 10 hours at $22: ($480 + $220) ÷ 40 = $17.50 an hour.
  2. 20 hours at $15 and 20 hours at $25: ($300 + $500) ÷ 40 = $20.00 an hour, the same as the simple average because the hours are equal.
  3. 35 hours at $18, 5 hours at $30 and 2:30 at $12: ($630 + $150 + $30) ÷ 42.5 = $19.06 an hour.

Common questions

Why is this different from averaging the rates?

A simple average treats every rate as if you worked the same hours at each. The weighted average counts each rate by the hours you actually worked at it.

Which rate is used for overtime when I have two rates?

Under US federal law, for work for one employer in one workweek, overtime is based on the weighted average rate of that week (29 CFR 778.115). Some exceptions in the regulations allow other methods, and state rules can differ.

Can I use it for two different employers?

Yes, to see your average earnings per hour. Overtime is worked out per employer, so this average is not an overtime rate across two employers.

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