This formula multiplies the employee's regular hours by his hourly rate. Copy the Formula for Each Employee Click cell "F2" and place your mouse at the lower-right corner of the cell.

One way to calculate average hourly pay is to determine the average rate for all employees, regardless of where they work in your company, what they do or how many hours they work.

Here’s a look at how to calculate your paycheck, so you’ll understand how your hourly rate or annual salary translates into the sum you see in your bank account each pay period.

Once you’ve identified the average salary for the given position, you need to assess your business’s finances to determine a realistic amount you can afford to pay an employee in that role.

Using the time-and-a-half rule of thumb, you’d calculate overtime pay by multiplying an employee’s hourly rate by 1.5 and then multiplying the result by the number of overtime hours they worked.

Calculating an annual rate of growth for your salary will allow you to compare the growth in your salary to wage trends in your industry, or to increases in your cost of living.