How much is my time worth?
Every hour you spend on a chore is an hour you could spend earning, resting or with people you care about, so it helps to know what that hour is worth in money. Enter what you keep from your work and the hours it takes, decide how you value free time, and this calculator turns that into an hourly value. Add the tasks you could hand off and what they would cost, and it tells you which ones are worth paying for.
Cost per hour saved, task by task
What each task costs to hand off, divided by the hours it gives you back. Anything below your hourly value is a good trade.
Hand off or do it yourself?
The verdict for each task, and the value you gain or lose each month by paying for it.
| Task | Hours saved | Cost | Cost per hour saved | Monthly value | Verdict |
|---|
How your time is valued
Your paid rate is what you actually keep for every hour your work takes. Your time value adjusts that by how much you value free time.
A task is worth handing off when what you pay for each hour it saves is below the value of that hour.
Paid rate
Take-home pay divided by all the hours work takes.
paid rate = what you keep ÷ (hours per week × weeks)
Time value
Scaled by how much you value an hour of free time.
time value = paid rate × free time value
Cost per hour saved
For each task, what you would pay divided by the hours it saves.
cost per hour = cost to hire ÷ your hours
Monthly value
The value of the hours saved minus what you pay.
value = hours × time value − cost
Time value questions
How do I calculate what my time is worth?
Start with what you keep after tax from your work and divide it by all the hours that work takes, including commuting and unpaid overtime. That gives an hourly figure for how your time is paid today. Then decide whether an hour of free time is worth more or less to you than an hour of work.
Why use take-home pay rather than my salary?
Because you pay for outsourced help out of what you keep, not what you earn. If you earn $40 an hour before tax but keep $30, hiring a $35-an-hour cleaner costs you more than an hour of your own work earns.
When is it worth paying someone else to do a task?
When the cost per hour of your time saved is lower than what your time is worth to you. A cleaner who saves you 4 hours for $100 costs $25 per hour saved. If your time is worth more than $25 an hour, it is a good trade, especially if you use the time well.
What if I would not earn more with the time I save?
Then the saving is about free time, not money. That is why the calculator lets you value free time above or below your work rate. Many people value evenings and weekends with family more highly than an extra hour of paid work.
Should freelancers use a different number?
Freelancers can often turn saved hours straight into billable work, so the case for outsourcing is stronger. Use your effective hourly rate after taxes and unbilled time, not your quoted rate, to stay realistic.
Does this mean I should outsource everything above my rate?
Not necessarily. Some tasks you enjoy or want to keep control over, such as cooking or caring for a garden, are worth doing yourself. Use the numbers to remove guilt from the tasks you dislike, not to put a price on everything.