How to use this calculator
- Enter or choose internet bill per month.
- Enter or choose phone bill per month.
- Enter or choose share of internet and phone used for work.
- Enter or choose extra electricity and heating per month.
- Enter or choose coworking or desk rental per month.
- The monthly allowance updates as you type. Use Copy result or Share to keep it.
Method
Monthly = (Internet + Phone) × Work share + Utilities + Coworking + Equipment ÷ Months; Annual = Monthly × 12
- Work share
- the percentage of the bill attributable to work
- Months
- how long the equipment is expected to last
Worked example
- Connectivity = (60 + 40) × 50% = $50.
- Equipment = 900 ÷ 36 = $25 a month.
- Monthly = 50 + 30 + 0 + 25 = $105, or $1,260 a year ($8.75 per remote day).
These costs support a remote work allowance of about $105 a month, or $1,260 a year.
What the result means
Use the result as the basis for a flat stipend for a role or location. If your company buys equipment directly, set equipment to zero and the allowance covers running costs only.
Assumptions and limits
- Costs are the extra or work-related share only, not the whole household bill.
- Whether an allowance is taxable, and any tax-free limits, depend on the country and are not applied here.
Questions
Is a remote work allowance taxable?
It depends on the country and how it is paid. Many tax authorities treat flat cash stipends as taxable pay unless a specific exemption applies; check with your payroll provider.
How do I estimate extra utility costs?
Compare bills for months working at home with months in the office, or estimate the hours of heating and the power use of your equipment.