How Much Is Your Time Worth? A Simple Formula for Business Owners

“I’ll just do it myself” sounds free. It isn’t. Every hour you spend on low-value tasks has a cost: the higher-value work you didn’t do. To make better decisions about what to delegate, you need to know how much your time is worth.

The simple formula

Annual income goal is what you want your work to generate for the business, or for you personally, this year. Use your target, not just what you earn today. You’re pricing the time of the person you’re becoming.

Annual working hours = hours per week × working weeks per year. For example, 45 hours × 48 weeks = 2,160 hours.

Worked example

A founder wants their work to generate 120,000 a year (in any currency) and works around 45 hours a week for 48 weeks:

• 120,000 ÷ 2,160 hours = about 55.6 per hour

So every hour they spend on a task someone else could do well for less than 55.6 is an hour that costs the business money.

Why your real hourly value is often higher

The formula assumes all your hours are equally productive. They aren’t. If only half your week goes on revenue-generating or strategic work, the effective value of those hours is roughly double. That’s why reclaiming even a few hours of admin each week can have an outsized impact.

Using your number to decide what to delegate

Once you know your hourly value, sort your recurring tasks:

Task type	Example	Decision
High value, needs you	Sales calls, strategy, key customers	Keep
Needs your input, not your hands	Proposals, content drafts	Delegate with review
Low value, repeatable	Inbox, scheduling, data entry, posting	Delegate now

Then estimate the hours each task takes per week. Multiply delegated hours by your hourly value, and you have the value of the time you’d get back.

Example

If 8 hours a week of repeatable tasks were delegated by the founder above:

• 8 hours × 48 weeks = 384 hours a year
• 384 × 55.6 = about 21,350 in time value redirected to higher-value work

That’s more than nine full 40-hour working weeks back each year.

Try the free calculator

Rather than doing the maths by hand, use our free Delegation Calculator. It:

• Calculates your hourly value from your income goal and working hours
• Lets you tick common tasks and add your own
• Shows how many hours per week, month and year you could delegate
• Ranks the tasks to hand off first
• Gives you a summary you can save or email to yourself

Common objections

“I can’t afford to delegate.” Compare the cost of support with your hourly value. If delegation costs less per hour than your time is worth, not delegating is the expensive option.

“It takes too long to explain.” You explain once; you save time every week after that. Our delegation framework makes hand-offs quicker.

“Nobody does it like me.” Write down the standard. Most “only I can do this” tasks are really “only I know how this is done” tasks.

Next step

Know your number, list your tasks, and start with the easiest wins. If you’d like help turning that list into organized, ongoing support, Fitma can help. Book a call or message us on WhatsApp.

Frequently asked questions

How do I calculate my hourly rate as a business owner?

Divide your annual income goal by the number of hours you work in a year (hours per week × working weeks). The result is your hourly value.

Should I use revenue or profit?

For delegation decisions, use the income you want your own work to generate. It reflects the value of your time more accurately than total company revenue.

What’s a good rule for what to delegate?

If a task can be done well by someone else for less than your hourly value, and it doesn’t need your specific expertise, delegate it.