Plain-English glossary
Hourly Rate Glossary
Use this glossary when comparing salary, hourly pay, freelance pricing, overtime or meeting cost.
What this glossary is for
Work money calculations are only useful when the time period is clear. Gross pay, net pay, billable hours and working hours answer different questions.
Key terms
Gross pay
Pay before deductions such as taxes, insurance or pension contributions.
Net pay
Pay after deductions. This is usually the more useful number for budgeting.
Hourly rate
Pay per hour of work. Salary can be converted to an estimated hourly rate by dividing by working hours.
Billable hours
Hours a freelancer can charge to clients. Admin, sales, learning and unpaid revisions often reduce billable time.
Overtime multiplier
The rate applied to overtime hours, such as 1.5 times normal pay.
Annual working weeks
The number of weeks worked in a year after holidays, sick time or quiet periods.
Meeting cost
Estimated cost of attendee time, usually people multiplied by hourly rate and meeting length.
How to use the terms
Read the definition first, then open the calculator that uses the same term. Change one input at a time so you can see which number drives the result.
Main related calculator
The first tool below is the most directly related calculator for this glossary. The remaining links stay within the same topic so the page does not send visitors into unrelated tools.