Hourly rate calculator
Find the hourly billing rate that covers your annual pay goal and business overhead across your billable hours.
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Example values are filled in. Change them to match your business.
Your desired annual pay before personal taxes. Exclude this pay from overhead below.
Rent, insurance, software, and other annual business costs you want this rate to cover.
Allow for vacation and other time away.
Include both billable work and nonbillable business time.
For example, 24 billable hours out of a 40-hour week is 60%.
Your calculation
Hourly billing rate
$52.08/ hour
- Annual pay and overhead
- $60,000.00
- Annual billable hours
- 1,152
All amounts are in USD. Sales tax is excluded. Results reflect only the costs you enter.
Your calculator inputs stay in this page and are not sent with analytics or signup links.
Make room for the hours you cannot bill.
Annual billable hours are working weeks × weekly hours × the billable percentage. Admin, sales, and unpaid travel reduce the time available to bill. This rate covers the pay goal and overhead entered, before additional profit or personal taxes. Job materials and other costs excluded here need separate coverage.
Rate = (annual pay + overhead) ÷ annual billable hours
A 40-hour week with 24 billable hours
Illustrative amounts in USD, before sales tax. These are not recommended rates or margins.
- $48,000 annual pay + $12,000 annual overhead = $60,000 to cover.
- 48 working weeks × 40 hours × 60% billable time = 1,152 annual billable hours.
- $60,000 ÷ 1,152 hours = about $52.08 per billable hour.
The rate covers the entered pay and overhead. It does not add a profit allowance, personal taxes, or job costs left out of those amounts.
Common questions
How do I calculate my billable percentage?
Divide hours you can charge clients for by all business working hours, then multiply by 100. For example, 24 billable hours in a 40-hour week is 60%. Include admin, sales and other nonbillable time in the total.
Is the annual pay goal my take-home income?
It is the pay amount you enter before personal taxes. The tool does not calculate take-home pay, benefits or tax obligations. Add any business costs you want to cover to overhead without counting your pay twice.
Should I bill this rate for every hour I work?
The result applies to the billable hours used in the calculation. It spreads the entered annual costs across those hours. Materials, extra profit and other excluded costs need separate coverage; the result is not a market-rate recommendation.
Put your next estimate together.
Use Mantuno to prepare estimates, keep client details together, and follow your invoices and payments.