How to Calculate Hourly Rate in Excel (2 Quick Methods)

Finding an hourly rate can help you in many ways for a business or other purposes. There are many ways to do it but this article will provide you with two smart and quick ways to calculate the hourly rate in Excel with sharp steps and vivid illustrations.


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2 Ways to Calculate Hourly Rate in Excel

To explore the methods we’ll use the following dataset which represents the daily paid amount of the writers of a content publishing site named ‘ExcelDemy’.


1. Manual Formula to Calculate Hourly Rate in Excel

Now to calculate the hourly paid rate, we’ll use a manual formula in the first method. The formula is so simple, just divide the amount by hours. But keep in mind that, you will have to multiply the hours by 24. Because Excel stores the time as a fraction of a day. So 5:00 is defined by the system as 5/24 which is 0.21. So by multiplying that time by 24, you will get 5. Now let’s start.

  • Activate Cell E5.
  • Then write the following formula in it-
=D5/(C5*24)
  • Later, just press the Enter button to get the result.

Manual Formula to Calculate Hourly Rate in Excel

  • After that, drag down the Fill Handle icon to copy the formula for the other cells E6:E11.

Manual Formula to Calculate Hourly Rate in Excel

Then you will get all the writers’ hourly rates.

Read More: How to Calculate Total Hours Worked in a Week in Excel (Top 5 Methods)


2. Use QUOTIENT Function to Calculate Hourly Rate in Excel

As we need to divide values for finding hourly rate, we can use the QUOTIENT function to do that. Because the QUOTIENT function is used to return the integer value of a division.

  • Type the following formula in Cell E5
=QUOTIENT(D5,(C5*24))
  • Hit the Enter button to get the output.

Use QUOTIENT Function to Calculate Hourly Rate in Excel

  • Now to get all the other hourly rates, drag down the Fill Handle icon over the cells E6:E11.

Use QUOTIENT Function to Calculate Hourly Rate in Excel

Then soon after you will get all the other hourly rates as integer values.

Read More: How to Calculate Hours and Minutes for Payroll Excel (7 Easy Ways)


Similar Readings


How to Calculate Payment with a Formula Using the Hourly Rate in Excel

If the hourly rate is given then we can easily find the total payment for a specific time by multiplying the rate and time. Let’s learn that in this section. For that, I have modified the dataset by replacing the ‘Paid’ column with ‘Rate’.

  • In Cell E5 write the following formula
=(C5*24)*D5
  • Hit the Enter

Calculate Payment with a Formula Using the Hourly Rate in Excel

  • Finally, just drag down the Fill Handle icon to finish.

Calculate Payment with a Formula Using the Hourly Rate in Excel

Soon after you will get all the payments for the writers.

Read More: How to Calculate Total Hours Worked in a Week in Excel (Top 5 Methods)


Things to Remember

  • Don’t forget to multiply the time by 24.
  • The QUOTIENT function will give you only the integer portion of a division. So if you want the exact values, try the first method.

Conclusion

I hope the procedures described above will be good enough to calculate the hourly rate in Excel. Feel free to ask any question in the comment section and please give me feedback.


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Mithun

Mithun

Hello! I am Md. Sourov Hossain Mithun. Welcome to my profile. Currently, I am working at Exceldemy as an Excel and VBA Content Developer. Excel is amazing software. Here I will post excel related useful articles. I am a graduate of Bangladesh University of Engineering and Technology. I love to learn new things and work with them. Thank you.

2 Comments
  1. I’m computer illiterate so I want to know more on excel 2013

  2. Hello JEMAIMAH OMAKEN, thanks for your feedback.
    Visit our site to explore more articles that will work on Excel 2013. As 2013 is not so older version so you will find no major differences.

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