TIME VALUE CALCULATOR
Know exactly what your time is worth.
This calculator is based on the formula in Dan Kennedy’s No B.S. Time Management For Entrepreneurs.
“What is ‘entrepreneurship’ if not the conversion of your knowledge, talent, guts, etc. – through investment of your time – into money?”
– Dan Kennedy, No. B.S. Time Management For Entrepreneurs
How to use the Time Value Calculator
Annual Earnings Target: This is what the company’s sales performance must be over the next calendar year to support your personal comfort – the number that aligns your business goals with your personal needs. Also known as ‘Lifestyle Congruence’ in Mike Michalowicz’s Fix This Next.
Work Days In A Year: The number of days you do – or want to – work in a year.
Work Hours In A Day: The number of hours a day you do – or want to – work in year. (Have some fun – see what a four-hour workweek looks like!)
Productivity Multiplier: The beauty of this formula is that it accounts for both your truly productive, revenue-generating activity and the not-so-productive time of, well, everything else. If you’re not sure, use the baseline ‘3’ that represents a 1/3 productive vs. 2/3 unproductive ratio.
Plug in your numbers, click ‘Calculate’ and BOOM – here is the value of your time.
You’ve Got Your Number – Now What?
Use your Time-Value Number as a decision-making criteria. Eliminate or delegate the tasks and activities that don’t match up with the value of your time.
‘Eliminate’ doesn’t mean certain low time-value tasks and activities aren’t necessary, it means eliminate them from your to-do list. Setting up automations where possible can also serve to take low-value activities off of your plate. Knowing the precise value of your time now makes the decision for whether or a time-saving tool or service is worth it’s expense.
With your Time-Value number, you’ll understand with confidence which rates for a VA or project manager are right for you. This number should be top-of-mind, all the time.
Client wants to “pick your brains for five minutes” – how much is that five minutes (that is rarely ever only five minutes) worth?
Team members lining up at the office door (or queries in Slack piling up) every day with routine questions? Now you’re looking at both your time value and theirs. Getting those operational systems in place are suddenly much more important than they were before.
Fly or drive? Maybe that road trip isn’t as inexpensive as you thought.
That exciting new opportunity? Add your time-value into your ROI calculation and see if it is exciting or ‘meh’. Saying ‘No’ is so much easier with this level of clarity.
You get it. If you have to, write your number down and post it around your workspace. Make it your phone and computer wallpaper. Do whatever you have to do to burn it into your brain until using your Time-Value Number in your decision-making mental calculations becomes habit.