Graham's Cost-To-Time Calculator

Estimate how much an item is worth in time.

Who is Graham Stephan?

Graham Stephan is a personal finance YouTuber famously known for comparing the cost of items to the value of his time.

How did Graham develop his philosophy?

In the following YouTube clip, Graham explains that he "looks at every single purchase as hours in [his] life."

For example, to Graham a Starbuck coffee is worth 45 minutes of his life (after tax). He argues that the coffee might only last him 30 minutes -- which makes it "a bad deal." Comparatively, he equates a pair of shoes to 1 hour of his life, but the trade-off is wearing them for a year.

How much is Graham's time worth?

One commenter asked, "How does a $5 coffee cost 45 min and shoes cost 1 hour?"

According to our calculations, Graham's worth would be around $0.04 to $200 per hour.

We're sure Graham's time is way more valuable than this. Instead, we believe Graham uses his cost-to-time ratio as a framework to assess a purchase in another metric. This formula helps Graham analyze and more deeply understand why he would spend money. In the above example, Graham compared 30 minutes to 45 minutes for the coffee, and 1 hour to 1 year for the shoes. This simplified equation gives Graham a bird's eye view of his choices.

Another viewer replied, "But the caffeine in the coffee will last hours…does graham not understand coffee?"

How does Graham's Cost-To-Time Calculator?

We created a calculator to mimic Graham's thinking. This allows users to enter the cost of an item to determine if the value is worth their time.

Are there are other ways to calculate items worth?

Yes! In fact Graham's podcast guest, Bill Perkins, argued everything doesn't fit into a time equation. Perkins is a hedge fund manager and a thrive-vs-survive enthusiast who believes some of the most enjoyable things in life only lasts 2 minutes.

Has Graham ever made decisions that went against his cost-to-time formula?

Sort of! For example, when Graham talks about his wedding, he initially did not see the value in additional costs. Overtime he realized he was actually paying for a way to get loved ones together for a memorable experience.

In the end, we believe Graham doesn't necessarily put a dollar or time value on everything. Instead, Graham figured out a way to mentally process his buying decisions to make sure they were items or experiences he really wants.

What are some lessons from Graham's Time-To-Cost formula?

Perspectives on money and value change, and are especially dependent on a person's stage in life. For example, Graham appears super frugal as a single real estate agent building his portfolio, but relaxed his financial reigns when he got married.

We hope our Graham-inspired calculator gives visitors a new way of looking at how they spend money and value their time.