How to use this tool
Enter your annual income goal, business expenses and realistic billable weeks and hours.
Use billable time after administration and sales work. The hourly, day and project amounts are before personal tax.
Hourly rate = (income goal + business expenses) / annual billable hours
Worked example
$60.87 · minimum hourly rate
Fixed example using the settings below. Monetary examples use USD; dates and times use their stated reference values. This example stays unchanged when you edit your calculation.
Example inputs
- Annual income goal before personal tax: 60000
- Annual business expenses: 10000
- Working weeks per year: 46
- Billable hours per week: 25
- Billable hours per day: 5
- Project hours: 20
Method illustration: 70,000 revenue over 1,150 billable hours needs about 60.87 per hour.
Assumptions and limits
- Use billable time, excluding sales/admin time. This is before personal tax, and does not infer local tax rules.
Check or report a result
Check the units, selected calculation and assumptions first. Compare the fixed example above with your inputs to identify what changed.
Report a calculation issue with the page address, hypothetical inputs, result displayed and result expected. Do not include passwords, bank details or other private information.