Hourly rate calculator.
Find the rate that actually sustains the business. Target income plus overhead, divided by the hours clients really pay for.
Required hourly rate
$90.00
Billable hours / year
1200
Gross revenue / year
$108,000.00
Rate = (target income + overhead) ÷ billable hours per year. Most independents bill 20 to 30 hours of a 40-hour week.
The mistake most independents make
Converting a target salary straight into an hourly rate ignores two realities: the business has costs, and not every hour is billable. Both push the required rate up. The formula here accounts for overhead and for the gap between hours worked and hours billed, which is where sustainable pricing lives.
Frequently asked questions.
Take your target annual income, add business overhead, and divide by your billable hours per year. Billable hours are the hours clients actually pay for, not every hour you work.
Software, equipment, insurance, accounting, marketing, and other costs of running the business. Many independents land between 15% and 30% of income.
Admin, sales, and delivery gaps eat hours that clients never pay for. Most independents realistically bill 20 to 30 hours of a full week, which is why rates must be higher than a salary conversion suggests.
Track them. Workotick tags tracked time to projects and clients, so your true billable ratio stops being a guess.
Charge right, then prove the hours.
Workotick tracks billable time per client and project automatically. Every feature included.
- Setup in Minutes
- Windows & Mac
- 14-Day Money Back