How Much Is Your Time Worth?

Your time has a dollar value — and most people have never calculated it precisely enough to make rational outsourcing and time-allocation decisions. There are actually four different ways to measure what your time is worth. Your nominal gross rate is what your employer pays per scheduled hour. Your nominal net rate strips out taxes. Your true net rate accounts for all work-related time including commute. And your opportunity rate — the most important figure — reflects what you could realistically earn with a free hour, considering your skills, demand for your expertise, and the rest premium that distinguishes leisure from productive work. The outsourcing decision is simple once you know your true rate: any task you can pay someone else to complete for less than your true hourly rate generates positive economic value to outsource. At $30/hour true rate, paying $25/hour for house cleaning frees up that time for higher-value activities — work, rest, family, or anything that generates more than $25/hour in value to you. At $15/hour, the economics flip. This calculator builds your complete rate stack and applies it to eight common household tasks, telling you definitively which to outsource and which to do yourself based on your specific situation.