About this calculator
Work backwards from the income you want, your overheads and your realistic billable hours to the rate you need to charge.
How it’s calculated
Break-even = (pay + overhead) ÷ (billable hours per week × working weeks). Rate = break-even × (1 + profit).
Worked example
With these inputs:
- Pay you want per year
- $70000
- Business overhead per year
- $18000
- Billable hours per week
- 30
- Working weeks per year
- 46
- Profit on top
- 10%
- Hours in a day
- 8
the result is:
- Hourly rate to charge
- $70.14
- Break-even hourly
- $63.77
- Billable hours per year
- 1,380
- Revenue needed
- $96,800.00
Tips from the trade
- Billable hours are far fewer than hours worked. Quoting, travel, buying and admin all eat into the week.
- Rework this every year as costs move.
Results are estimates for planning and pricing. Check quantities against your drawings, the manufacturer’s data and local building codes before ordering.