What is This?
We have developed this hourly rate calculator to give you a guide based on your costs, number of billable hours and desired profit. It is a simple tool for you to play with.

Remember your hourly rate should always take into account factors like market demand, industry standards, skill level and experience - things that unfortunately we can't put into a calculator!

Use these calculations as a guide and then modify to suit your circumstance and conditions.

It will take you about 5-20 minutes to complete depending on how
much attention you give each calculation.

In this step you want to calculate what your total business costs will be FOR ONE FULL YEAR.

How much is your annual Office Rent? If you work from home you may wish to write the percentage of home rent that is for your office space $ How much do you spend annually on Travel? Think about airfares, taxis, buses, petrol $ How much do you spend each year on Computers, Furniture and Equipment? $ How much do you spend each year on Software? $ How much do you spend each year on Communications - Mobile Phones, Telephone, Faxline, Internet? $ How much does your annual Insurance cost? $Consider business insurance, health insurance, office insurance ... How much do you need to spend on Legal Fees? Often legal fees will happen as one off blocks usually right at the beginning. If this is the case try to divide the cost over 2-3 years to get an amortized amount. $ How much do you need to spend on Accountancy Fees? $ How much will your Office Supplies cost annually? Think stationery, cleaning, postage, books, magazines and all those miscellaneous items $ How much will you be spending on Advertising and Promotions Add up things like Yellow Pages listings, printing costs for mailers, banner ads and so on $ How much will you be spending on Anything Else For all those expenses that don't fit under any other heading like Couriers, Business Taxes, Association Fees etc $

Your Total Business Costs: $0.00 p/year

 

In this step you want to calculate what your total personal costs will be FOR ONE FULL YEAR.

How much is your annual Rent / Mortgage payments? $ What is your annual budget for Daily Expenses? All those day-day things like food, entertainment, life... $ How much do you intend to save for your Retirement Account? $ How much do you spend each year on Occasional Expenses? These might include things like servicing your car, holidays and so on $ How much will you be spending on Anything Else For anything that doesn't fit under the other headings $

Your Total Personal Costs: $0.00 p/year

 

How many days a week do you work on average? For Example if you worked 4 full week days and three half days you'd write 5.5 Days How many days of vacation do you need annually? Make sure you are only counting days you would have otherwise been working. So if you work only on weekdays, you'd count all the weekdays you want to take for vacation Days How many sick and personal days do you need annually? Days How many public and religious holidays? Days

You Will Be Working: 0 days p/year

 

 

How many hours do you work a day on average? Add up ALL the hours you work, not just those on client projects Hours p/day Approximately what percentage of hours can you actually bill? Nonbillable hours might include work on the business, hours spent billing clients, time when you have no work etc. %

You Have a Total of: 0 billable hours p/year

 

Enter a Dollar amount of Savings/Profit you'd like to make each year Profit is the money above what it costs just to run your business and live, what extra cash do you wish to earn (this could be for holidaying, buying a car, saving up etc) $