Why use net (after-tax) hourly?

Because the price tag is paid in after-tax dollars. Your gross hourly rate overstates what you actually take home.

Should I include commute & prep time?

If you want a stricter answer, add commute and prep hours to your weekly hours — your effective hourly drops, so the cost in hours rises.

Yes — popularized in 'Your Money or Your Life'. She calls this your 'real hourly wage' and uses it to evaluate every purchase.

See how many hours, days, or weeks of your life a purchase actually costs.

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Price of the purchaseGross annual salary

Weeks worked / yrHours / weekEffective tax %

Hours of your life

53.3 hrs

Equivalent in 8h work days

6.7 days

Equivalent in work weeks

1.3 weeks

Your net hourly rate

$23

Results are estimates for informational purposes only. Not financial advice.

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Results are estimates for informational purposes only.