Business
Hourly Rate Calculator
Find the hourly rate you need to charge to reach an annual income goal after expenses and time off.
Rate to charge per hour
$143.75
Rate = (income + expenses) ÷ billable hours × (1 + margin)
- Base hourly rate
- $119.79
- Billable hours / year
- 960
- Revenue needed
- $115,000.00
CalculateWise provides estimates for informational purposes only and is not financial, tax, legal, lending or investment advice.
How to use the Hourly Rate Calculator
- Enter target annual income and annual expenses.
- Set billable hours per week and weeks off per year.
- Add a desired profit margin if needed.
How it works
Required revenue is divided by actual billable hours per year, then adjusted by the profit margin.
Formula
Hourly rate = (income goal + expenses) ÷ billable hours × (1 + margin)
Example
To earn $100,000 with $15,000 expenses, 20 billable hours/week and 4 weeks off, the base rate is about $118/hour.
Common uses
- Freelance quotes
- Consulting rates
- Contract pricing