How this number is made
A price in hours is the price divided by what you keep per hour, not your gross wage. Use take-home. A purchase that costs a week of take-home is a different decision from one that costs an hour.
- Take-home per hour is the paycheck divided by the hours on it, if tax is already out.
- The price should include the sales tax if you want the hours to match the register.
Formula
Hours = price ÷ take-home hourly rate.
Worked example
With the figures already in the form, hours of take-home pay is 54.5.
Questions
Should I use gross wages?
Only if you want to pretend the tax does not exist. Hours of work you have to trade are after tax.
What about the commute to earn those hours?
Add it if you want a harsher number. The true-hourly page puts the commute in the rate instead.