The Math
The first 33 minutes of your working day are worked for the car
What the commute costs in time and in money at the government's own per-mile rate, and how a purchase looks when…
$4,759 per year
Work Hours Calculator: How Many Hours Does It Cost?
Convert a purchase price into hours of work. Account for take-home pay, working hours, commuting time and job-related costs.
Last updated:
Example: the calculation with the default values
The defaults are example values, not an average. Enter your own numbers and press “Calculate” to run it with yours.
In working hours
86.6 hours
Net pay per working hour
$14
With the commute counted
$14
| Net pay per year | $28,800 |
|---|---|
| Working hours per year | 2,080.00 |
| Net pay per working hour | $14 |
| What the thing costs | $1,200 |
Assumptions behind this calculation
- Working days per year: 260
- The default of 260 is 52 weeks times 5 days, with nothing taken off. Enter the days you really work – holidays and time off already deducted – and you will see your hour is worth more than you thought.
- The cost of getting there is NOT deducted, only the time. To count it, subtract it from your net pay before you enter it.
How we calculate
Net pay per month times twelve, divided by your working hours per year – working days times hours per day –, is your net pay per working hour.
With a commute, the commuting hours, working days times the trip there and back, are added to the working hours. The price divided by that hourly rate is the hours the thing costs you; divided by the hours per day, the working days.
The reasoning behind these numbers, with sources, is in the article: Your Real Hourly Wage: Commuting Time and Work Costs.
Frequently asked
How many hours of work does a purchase cost?
With the defaults – a $1,200 price, $2,400 take-home pay a month, 8 hours on 260 working days – you earn $13.85 net per hour, and the thing costs 86.6 working hours or 10.8 working days.
How do I work out my real hourly wage?
Take-home pay per month times twelve, divided by working days times hours per day. In the example, $28,800 over 2,080 hours is $13.85. With a commute, the commuting hours are added, and your hour is worth less.
Why does the calculator assume 260 working days?
The default of 260 is 52 weeks times 5 days, with nothing taken off. Enter the days you really work – holidays and time off already deducted – and you will see your hour is worth more than you thought.
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