Hourly rate calculator

Use this hourly rate calculator to cover gross income, expenses and margin. Account for holidays and billable time, then price a day or project.

Free, no sign-up. Runs in your browser, with no AI calls.

Add your target yearly gross income and business expenses, then divide by one minus your chosen profit margin share. Divide that revenue by the hours you can bill after leave and holidays. The calculator also prices a working day and a project, with a comparison of different billable shares.

Your figures

Enter your own amounts and shares. Results update as you type. No income, salary or call assumptions are prefilled.

Currency changes the units shown. No exchange-rate conversion is applied.

Leave and holiday days are separate scheduled workdays. Do not count the same day twice. Their total cannot exceed your scheduled days.

Your calculation

Enter the required figures and check the marked inputs to see a result.

All figures are gross. Taxes and contributions vary by country.

How to use this tool

Enter your income and expenses
Use a gross yearly income goal and yearly business expenses. Revenue = (income + expenses) / (1 - margin / 100). Margin is the share of revenue left after covering that income and those expenses. No salary or industry average is supplied.
Count billable hours
Scheduled hours = weeks times hours per week. Subtract leave and holiday days times hours per working day, then multiply by your billable share. Divide required revenue by billable hours. Sales, administration and learning belong in the nonbillable share.
Price a day or project
Day rate = hourly rate times hours per day. Project quote = hourly rate times project hours, plus direct project costs / (1 - margin / 100). Direct costs are separate from yearly overhead. Compare billable shares and copy your assumptions with the result.

Formula reference, checked 2026-10-12

Questions before you start

Margin is a share of the final revenue. Divide covered costs and income by one minus that share. A markup instead adds a percentage of the starting cost. The margin amount is a planning allowance above your gross income goal and business expenses.

They reduce the hours available to work. Billable share reduces those remaining hours again for work you cannot charge to a client. Enter separate scheduled workdays for leave and holidays, without counting the same day twice.

Enter project hours and direct costs to calculate a quote at your chosen rate and margin. Include revisions and scope risk in your hours. A planning rate does not establish the market price or guarantee that a client will accept the quote.

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