What this calculator does
Prices are easier to judge when you see them in hours of your own work. Enter a price, the sales tax and how often you pay it, then your pay: an hourly rate or a yearly salary, the hours you work a week and the share of pay you take home after taxes and deductions. The calculator shows how many hours of work the purchase takes, and for repeating bills, the hours a month and a year and the share of your take-home pay.
How it is worked out
Take-home pay per hour = hourly pay (or yearly salary ÷ (hours a week × 52)) × your take-home share. Hours of work = price with sales tax ÷ take-home pay per hour; workdays = hours ÷ (hours a week ÷ 5). Example: a $120 purchase with 7% sales tax costs $128.40. At $25 an hour with 78% taken home ($19.50), that is about 6 hours 35 minutes of work, or 0.8 of a workday. A $15.49 monthly subscription on a $60,000 salary takes about 41 minutes of work a month and 8 hours 16 minutes a year.
Ways to use it
- Before a big purchase, ask whether the item is worth that many hours.
- For subscriptions and bills, the yearly hours show how small monthly costs add up.
- To find your real take-home share, use the paycheck calculator with your own taxes and deductions.
Frequently asked questions
Why use take-home pay instead of my hourly rate?
You pay for things with the money left after taxes and deductions, so take-home pay shows the real hours.
What take-home share should I use?
Divide your net pay by your gross pay on a recent pay stub, or use the paycheck calculator. The box starts with an example.
Does it work for a salary?
Yes. Choose "A yearly salary"; the calculator divides it by your hours a week times 52.
Is my information saved?
No. Everything stays on this page.