Work hours & pay
Value of your time calculator
Enter your take-home pay and working hours, then a task and the price to hand it off; see whether outsourcing it pays.
Use take-home pay, because you pay for help with money that has already been taxed.
How the value of your time is calculated
Your hourly value is your take-home pay ÷ (hours per week × working weeks). The task is worth that rate × its length in hours, and that figure is the break-even price: pay less than it to outsource and you come out ahead, pay more and doing it yourself is cheaper.
Example: $60,000 a year after tax for 40 hours a week over 48 weeks is 1,920 hours, so an hour of your time is worth $31.25. Cleaning the flat takes you 2 hours, which is $62.50 of your time. A cleaner charges $40, so you gain $22.50 each visit. Twice a month that adds up to $540 a year and 48 hours back.
| Take-home pay per year | Hourly value | A 2-hour task is worth |
|---|---|---|
| $30,000 | $15.63 | $31.25 |
| $45,000 | $23.44 | $46.88 |
| $60,000 | $31.25 | $62.50 |
| $80,000 | $41.67 | $83.33 |
| $100,000 | $52.08 | $104.17 |
| $150,000 | $78.13 | $156.25 |
The table uses 1,920 working hours a year (40 hours × 48 weeks).
When the math says outsource, and when it does not
The comparison is only real if the freed hours turn into something you value: paid work, rest, family time or a project. A salaried employee does not earn more by cleaning less, so for them the hourly value is a way to price their free time, not a cash saving. A freelancer who fills the slot with billable work gains in actual money, and should use their after-tax billing rate rather than salary.
Two adjustments make the result more honest. Include the time you would still spend managing the help, such as booking, explaining and checking the work. And account for skill: if a professional does the job in half the time or to a higher standard, the outsourcing price buys more than your hours.
Some tasks are worth doing even when the numbers say otherwise, because you enjoy them or they double as exercise. Others are worth outsourcing at a small loss because you dread them and they drain the rest of the day. Use the verdict as the money side of the decision, not the whole decision.
Frequently asked questions
How do I calculate what my time is worth per hour?
Divide your yearly take-home pay by the hours you work in a year. With $60,000 after tax, 40 hours a week and 48 working weeks, that is $60,000 ÷ 1,920 = $31.25 per hour.
Should I use gross or net income?
Use net income. The money you pay a cleaner or a delivery service comes out of your taxed pay, so comparing it with your gross rate would make outsourcing look cheaper than it is.
Is outsourcing worth it if I am on a fixed salary?
Not in cash terms, since your salary does not change. It is worth it if you value the freed hours at least as much as the price, for example because they go to rest, family or a side project.