How to use the cost in work hours calculator
- Choose whether you know your pay as hourly or yearly and enter it. Use pay after taxes if you want the cost in hours you actually keep.
- Enter your hours per week and the hours in a work day. For yearly pay, also enter the paid weeks per year.
- List what you are thinking of buying with its price. Add as many rows as you like.
- Read the hours, work days and work weeks each purchase takes to earn, and the total.
Formula
Hours of work = price / hourly pay
Work days = hours / hours in a work day
Work weeks = hours / hours in a work week
Hourly pay from yearly pay = yearly pay / (hours per week x paid weeks)
Results are shown to one decimal for hours and two decimals for days and weeks.
Three purchases at $24 an hour
At $24.00 an hour, concert tickets for $180 take 7.5 hours, or 0.94 of an 8 hour day. A $799 phone takes 33.3 hours, and $120 of takeout in a month takes 5.0 hours. Together the three cost $1,099, which is 45.8 hours or 5.72 work days.
With yearly pay of $52,000, 40 hours a week and 52 paid weeks, the hourly pay is $25.00, so a $300 purchase takes 12.0 hours.
Why price in hours
A price in dollars is abstract. A price in hours of your own work is concrete, because you know what a day of work feels like. Some people use it as a pause before a large purchase, and others use it to see that something they thought was expensive takes less time than they expected.
The tool does not tell you whether to buy. It only translates. Whether 33 hours of work is a fair price for a phone is your call.
Which pay to use
Gross pay shows the time before tax, but you cannot spend gross pay. Pay after taxes is closer to the hours you actually work for a purchase. If you want a more complete picture, subtract the time you spend commuting and the costs of working from your pay first, or compare with your hourly to salary conversion.
For recurring spending, enter the monthly or yearly total as the price. The subscription cost calculator adds up what services cost over a year, and the latte factor calculator shows what small habits add up to.
Assumptions and limits
- Pay is the number you enter. Taxes are only reflected if you enter pay after taxes.
- Yearly pay is turned into an hourly rate with your hours per week and paid weeks, so unpaid time off lowers it.
- The tool does not value commute time, overtime or the benefit of what you buy.
- Prices must be above zero, and pay must be above zero.
Frequently asked questions
How many hours do I have to work to afford something?
Divide the price by your hourly pay. A $180 item at $24 an hour is 7.5 hours. Use pay after taxes for the most realistic answer.
Should I use gross or take-home pay?
Take-home pay answers how many hours you work for the money you can spend. Gross pay shows the earlier, larger figure. Choose the one that matches your question.
How is yearly pay turned into hourly pay?
The tool divides yearly pay by hours per week times paid weeks. With $52,000, 40 hours and 52 weeks, that is $25.00 an hour.
Can I compare several things at once?
Yes. Add a row for each purchase and the table lists the hours, days and weeks of work for each one, plus a total.