What Is Your Time Worth Calculator
Calculate how much your time is worth per hour to make better spending and outsourcing decisions.
Knowing what your time is worth helps you make smarter decisions about when to do things yourself versus paying someone else. If your time is worth $50/hour, spending 3 hours to save $30 on an oil change is actually a net loss.
The basic formula: Hourly worth = Annual income / Total working hours per year
For a standard full-time job: $60,000 / 2,080 hours = $28.85/hour
But that is the minimum. Your true time value is often higher because:
- You have limited free hours (maybe 3–4 per day after work, commute, and sleep)
- Weekend and evening hours are worth more (scarcity premium)
- Energy and mental capacity are finite — an hour after work is not equal to a fresh morning hour
A better calculation includes all work-related time: Total work hours = Job hours + Commute + Getting ready + Work stress recovery
Example: 40 hours work + 5 hours commute + 3 hours prep + 2 hours recovery = 50 hours $60,000 / (50 × 52) = $23.08/hour true rate
How to use this number:
- Cleaning: House cleaning costs $25–50/hour. If your time is worth more, hire a cleaner.
- Lawn care: $30–60 per visit. Takes you 1–2 hours. Compare to your rate.
- Car wash: $15–25 automated vs 1 hour of your time.
- Meal prep vs takeout: Cooking saves money but costs 1–2 hours.
- DIY repairs: $50–100/hour for a handyman. How long would it take you?
Important caveat: Not all time saved converts to money earned. If you would spend the saved hour watching TV, the financial value is zero. This calculation is most useful when saved time enables you to work more, rest more (improving productivity), or do something you truly value.
Tip: Track your actual free time for a week. Most people overestimate how much they have by 30–40%.