How This Calculator Works
Hourly Rate turns the inputs into a visible formula-based estimate. Use it to compare margin, funnel movement, CAC, revenue, cost, and scenario planning before changing pricing, spend, or operations.
Freelancers, consultants, and service providers can use this hourly rate calculator to estimate what to charge after expenses and billable hours.
The calculator adds business expenses to the income target and divides by expected billable hours.
Formula
Hourly rate = (target income + annual expenses) / billable hours.
Example Calculation
$90,000 income plus $12,000 expenses over 1,200 billable hours requires $85 per hour.
When to Use This Calculator
- Set freelance rates
- Quote consulting work
- Compare part-time and full-time workload scenarios
Practical Scenarios
- Run the calculator before changing pricing, spend, hiring, or targets so margin and cash impact are visible. Use case: Set freelance rates.
- Compare conservative, base, and optimistic assumptions when revenue, conversion, CAC, or cost can move quickly. Start with Hourly Rate, then compare the changed result with the original.
- Use related business calculators when one metric affects the wider funnel, payback, runway, or profit picture. This is especially useful when you need to compare part-time and full-time workload scenarios.
Tips
- Billable hours are usually lower than working hours
- Add a tax and savings buffer
- Review rates when expenses change
Common Mistakes
- Reading revenue as profit before fees, refunds, discounts, labor, taxes, and fulfillment costs are included.
- Mixing monthly, annual, cohort, and campaign numbers in the same calculation.
Assumptions and Limitations
The Hourly Rate Calculator is strongest when revenue, cost, margin, period, and funnel assumptions all use the same reporting window. Review the formula, assumptions, and related calculators before using the result in a decision.
- Refunds, chargebacks, taxes, payment fees, labor, seasonality, and contracts can change real outcomes.
- The result is a planning estimate, not accounting, tax, legal, or professional advice.
- Verify assumptions against current records before changing prices, budgets, or strategy.
Hourly Rate explains hourly rate, freelance, consulting and business through decision context such as margin, period, funnel quality, and cash impact.