Can We Live on One Income Calculator

How it works

Work costs = childcare + commuting + other work costs · real value of the second income = second take-home pay − work costs · one-income surplus = main take-home pay − household expenses · two-income surplus = both incomes − expenses − work costs · kept per hour = real value × 12 ÷ 52 ÷ weekly hours

Families deciding whether one parent should stay home often compare the second paycheck with the household budget and stop there. The honest comparison subtracts the costs that exist only because both parents work — above all childcare, which for young children can take most of a second salary, plus commuting, work clothes, lunches and convenience spending. What remains is the real value of the second income. If the main income alone covers the household’s other expenses, living on one income is possible; if not, the shortfall shows how much must be cut. Remember the long-term costs too: lost retirement savings and career growth.

Worked example

The main earner takes home 4,500 and the second 2,500 a month. Childcare (1,000), commuting (200) and other work costs (150) total 1,350, so the second income is really worth 1,150 — about 6.63 per hour worked. Household expenses without work costs are 4,800, so on one income the family would be 300.00 a month short and needs 300 of spending cuts; with two incomes the surplus is 850.

Sources: US BLS — Consumer Expenditure Surveys · CFPB — Creating a monthly household budget

Frequently asked questions