Hong Life CalculatorsUnderstanding the unpaid work value calculator — concept and principle
Cooking, cleaning, caring for children or relatives and running a household take many hours but earn no wage. This calculator puts a money value on that unpaid work using the replacement cost method, and also shows its value at your own hourly pay.
How it is calculated
- Replacement cost per week = Σ hours of each activity × market hourly pay for that service.
- Per year = weekly value × 52; per month = yearly ÷ 12.
- Average replacement pay per hour = weekly value ÷ total hours.
- Opportunity-cost view = total hours × your own hourly pay × 52.
The principle
Unpaid household work produces real services, but because no money changes hands it does not appear in GDP. Statisticians value it in two main ways. The replacement cost method asks what it would cost to hire someone to do each task; Statistics Korea uses this approach in its household production satellite account, matching activities to occupations' wages. The opportunity cost method asks what you could have earned in the same time. The two answers differ because your wage may be higher or lower than the market wage for housework.
Worked example
Default inputs: housework 14 hours at 16 USD, care 10 hours at 17 USD, shopping and admin 4 hours at 18 USD, own pay 25 USD an hour.
- Weekly value = 14 × 16 + 10 × 17 + 4 × 18 = 224 + 170 + 72 = 466 USD.
- Hours per week = 28; hours per year = 28 × 52 = 1,456.
- Value per year = 466 × 52 = 24,232 USD; per month ≈ 2,019 USD.
- Average replacement pay = 466 ÷ 28 ≈ 16.64 USD an hour.
- Value at your own pay = 1,456 × 25 = 36,400 USD a year.
| Cooking, cleaning & laundry (hours per week) | Value per year (replacement cost) |
|---|---|
| 3.5 | $15,496 |
| 7 | $18,408 |
| 10.5 | $21,320 |
| 14 | $24,232 |
| 17.5 | $27,144 |
| 21 | $30,056 |
| 28 | $35,880 |
How to read the result
The figures show the economic contribution of household work, which matters in family budgeting, divorce settlements, insurance and policy discussions. Use local wages for each occupation to get a realistic number; they vary widely between cities and countries.
Common mistakes
- Using one wage for very different tasks such as childcare and cleaning.
- Counting simultaneous activities twice (for example childcare while cooking).
- Confusing replacement cost with what you would actually pay, including agency fees.
- Treating the opportunity-cost figure as income lost when you could not actually work those hours.
Frequently asked questions
How is unpaid work valued?
Usually by replacement cost (market wages for each task) or by opportunity cost (your own wage).
Is unpaid work counted in GDP?
No, but several statistics offices publish satellite accounts that estimate its value.
Which method is better?
Replacement cost is more common in official statistics because it values the work itself, not who does it.
Sources: 통계청, 무급 가사노동 가치 평가 (가계생산 위성계정) · OECD, Unpaid work and household production (OECD Statistics Working Papers)