Calculate hourly rate
With the Calculate Hourly Rate tool, you can easily determine what hourly rate to charge to achieve your desired income.
With the Calculate Hourly Rate tool , you can easily determine which hourly rate to charge to achieve your desired income. This tool is primarily intended for self-employed professionals, freelancers, and entrepreneurs who invoice their services by the hour.
Many entrepreneurs determine their hourly rate “by feel,” but forget about fixed costs, non-billable hours, and provisions for taxes and vacation. This tool helps you calculate a realistic and substantiated hourly rate .
Why a good hourly rate is important
An hourly rate that is too low can lead to:
- insufficient income
- too little room for growth
- financial stress
An hourly rate that is too high without justification can actually scare customers away. By calculating your hourly rate correctly, you know exactly where you stand.
What do you need for the calculation?
The tool uses the following data:
- desired net annual income
- annual business expenses
- number of working weeks per year
- number of working hours per week
- percentage of billable hours
Not all hours are billable: administration, marketing, and acquisition also count.
How does the calculation work?
- Annual income + costs = required revenue
- Workweeks × hours per week = total work hours
- Total working hours × billable percentage = billable hours
- Required revenue ÷ billable hours = hourly rate
Who is this tool suitable for?
- self-employed
- freelancers
- consultants
- coaches
- interim professionals
Frequently Asked Questions
Is this a net or gross hourly rate? The result is a gross hourly rate excluding VAT.
Can I also use this as an employee? The tool is primarily intended for self-employed individuals.
Are taxes included? Indirectly, via the desired income. You can adjust this yourself.