Hourly rate calculator
Work out the hourly rate that covers your income goal and overheads once you allow for hours you cannot bill and time off.
Fill in every field to see your rate.
How it works
- Billable hours = (52 − weeks off) × hours per week × billable share
- Rate = (desired income + overheads) ÷ billable hours
Worked example. An income goal of 60,000 plus 12,000 of overheads, with 40 hours a week, 5 weeks off and 60% billable, gives 1,128 billable hours and a rate of 63.83.
Common questions
What share of my time is billable?
It depends on your work. Track a few weeks: admin, quoting and travel often take a large share. Be honest, because this input changes the answer the most.
Should the rate include tax?
Set tax aside separately according to your local rules, or include it in your income goal. Ask an accountant.
Is this the rate I should charge?
It is the rate you need. Compare it with what your market pays and adjust overheads, billable share or the type of work if the two differ.