Calculate your hourly rate
Use the Calculate your hourly rate tool to determine the hourly rate you need to charge to achieve your desired income.
With the Calculate your hourly rate tool, you can easily determine the hourly rate you need to charge to achieve your desired income. This tool is especially designed for self-employed professionals, freelancers and business owners who invoice for their services by the hour.
Many business owners set their hourly rate “by feel”, but forget to account for overhead costs, non-billable hours and money set aside for taxes and holidays. This tool helps you calculate a realistic, well-founded hourly rate.
Why a good hourly rate matters
An hourly rate that is too low can result in:
- insufficient income
- too little room for growth
- financial stress
On the other hand, an hourly rate that is too high without justification may put clients off. By calculating your hourly rate correctly, you will know exactly where you stand.
What do you need for the calculation?
The tool uses the following information:
- 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 client acquisition also take time.
How does the calculation work?
- Annual income + expenses = required revenue
- Working weeks × hours per week = total working hours
- Total working hours × billable percentage = billable hours
- Required revenue ÷ billable hours = hourly rate
Who is this tool suitable for?
- self-employed professionals
- 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 if I am employed?
The tool is primarily intended for self-employed professionals.
Are taxes included?
Indirectly, through your desired income. You can adjust this yourself.