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Billable Rate Calculator

A billable rate is what you charge for an hour of work. Enter your fully loaded cost, the hours you pay for, the share of those hours you can actually bill, and the margin you want. You get the rate to charge, plus the break-even rate you must never go under.

$0.00/ hour

Bill this much an hour to hit your target margin

Break-even rate

$0.00

Charge less than this and the hour loses money

Billable hours a year

0.00 h

Paid hours times utilization, the hours you can invoice

What low utilization costs

$0.00

Added to every billable hour to pay for the unbilled ones

Profit a year at this rate

$0.00

On $0.00 of billed revenue

Reference

Hourly rates as an annual total

At full-time hours before tax. Worth comparing against the rate you land on above, since a billable rate has to cover the hours you cannot bill.

7.25 to 15 an hour7.25 to 15 an hour as a yearly, monthly and weekly gross at 40 hours a week.
7.25 to 15 an hour as a yearly, monthly and weekly gross at 40 hours a week.
Hourly ratePer yearPer monthPer week
7.25 / hr15,0801,257290
7.50 / hr15,6001,300300
7.75 / hr16,1201,343310
8.00 / hr16,6401,387320
8.25 / hr17,1601,430330
8.50 / hr17,6801,473340
8.75 / hr18,2001,517350
9.00 / hr18,7201,560360
9.25 / hr19,2401,603370
9.50 / hr19,7601,647380
9.75 / hr20,2801,690390
10.00 / hr20,8001,733400
10.25 / hr21,3201,777410
10.50 / hr21,8401,820420
10.75 / hr22,3601,863430
11.00 / hr22,8801,907440
11.25 / hr23,4001,950450
11.50 / hr23,9201,993460
11.75 / hr24,4402,037470
12.00 / hr24,9602,080480
12.25 / hr25,4802,123490
12.50 / hr26,0002,167500
12.75 / hr26,5202,210510
13.00 / hr27,0402,253520
13.25 / hr27,5602,297530
13.50 / hr28,0802,340540
13.75 / hr28,6002,383550
14.00 / hr29,1202,427560
14.25 / hr29,6402,470570
14.50 / hr30,1602,513580
14.75 / hr30,6802,557590
15.00 / hr31,2002,600600
15 to 30 an hour15 to 30 an hour as a yearly, monthly and weekly gross at 40 hours a week.
15 to 30 an hour as a yearly, monthly and weekly gross at 40 hours a week.
Hourly ratePer yearPer monthPer week
15.25 / hr31,7202,643610
15.50 / hr32,2402,687620
15.75 / hr32,7602,730630
16.00 / hr33,2802,773640
16.25 / hr33,8002,817650
16.50 / hr34,3202,860660
16.75 / hr34,8402,903670
17.00 / hr35,3602,947680
17.25 / hr35,8802,990690
17.50 / hr36,4003,033700
17.75 / hr36,9203,077710
18.00 / hr37,4403,120720
18.25 / hr37,9603,163730
18.50 / hr38,4803,207740
18.75 / hr39,0003,250750
19.00 / hr39,5203,293760
19.25 / hr40,0403,337770
19.50 / hr40,5603,380780
19.75 / hr41,0803,423790
20.00 / hr41,6003,467800
20.25 / hr42,1203,510810
20.50 / hr42,6403,553820
20.75 / hr43,1603,597830
21.00 / hr43,6803,640840
21.25 / hr44,2003,683850
21.50 / hr44,7203,727860
21.75 / hr45,2403,770870
22.00 / hr45,7603,813880
22.25 / hr46,2803,857890
22.50 / hr46,8003,900900
22.75 / hr47,3203,943910
23.00 / hr47,8403,987920
23.25 / hr48,3604,030930
23.50 / hr48,8804,073940
23.75 / hr49,4004,117950
24.00 / hr49,9204,160960
24.25 / hr50,4404,203970
24.50 / hr50,9604,247980
24.75 / hr51,4804,290990
25.00 / hr52,0004,3331,000
25.25 / hr52,5204,3771,010
25.50 / hr53,0404,4201,020
25.75 / hr53,5604,4631,030
26.00 / hr54,0804,5071,040
26.25 / hr54,6004,5501,050
26.50 / hr55,1204,5931,060
26.75 / hr55,6404,6371,070
27.00 / hr56,1604,6801,080
27.25 / hr56,6804,7231,090
27.50 / hr57,2004,7671,100
27.75 / hr57,7204,8101,110
28.00 / hr58,2404,8531,120
28.25 / hr58,7604,8971,130
28.50 / hr59,2804,9401,140
28.75 / hr59,8004,9831,150
29.00 / hr60,3205,0271,160
29.25 / hr60,8405,0701,170
29.50 / hr61,3605,1131,180
29.75 / hr61,8805,1571,190
30.00 / hr62,4005,2001,200
30 to 60 an hour30 to 60 an hour as a yearly, monthly and weekly gross at 40 hours a week.
30 to 60 an hour as a yearly, monthly and weekly gross at 40 hours a week.
Hourly ratePer yearPer monthPer week
31.00 / hr64,4805,3731,240
32.00 / hr66,5605,5471,280
33.00 / hr68,6405,7201,320
34.00 / hr70,7205,8931,360
35.00 / hr72,8006,0671,400
36.00 / hr74,8806,2401,440
37.00 / hr76,9606,4131,480
38.00 / hr79,0406,5871,520
39.00 / hr81,1206,7601,560
40.00 / hr83,2006,9331,600
41.00 / hr85,2807,1071,640
42.00 / hr87,3607,2801,680
43.00 / hr89,4407,4531,720
44.00 / hr91,5207,6271,760
45.00 / hr93,6007,8001,800
46.00 / hr95,6807,9731,840
47.00 / hr97,7608,1471,880
48.00 / hr99,8408,3201,920
49.00 / hr101,9208,4931,960
50.00 / hr104,0008,6672,000
51.00 / hr106,0808,8402,040
52.00 / hr108,1609,0132,080
53.00 / hr110,2409,1872,120
54.00 / hr112,3209,3602,160
55.00 / hr114,4009,5332,200
56.00 / hr116,4809,7072,240
57.00 / hr118,5609,8802,280
58.00 / hr120,64010,0532,320
59.00 / hr122,72010,2272,360
60.00 / hr124,80010,4002,400
60 an hour and up60 an hour and up as a yearly, monthly and weekly gross at 40 hours a week.
60 an hour and up as a yearly, monthly and weekly gross at 40 hours a week.
Hourly ratePer yearPer monthPer week
62.00 / hr128,96010,7472,480
64.00 / hr133,12011,0932,560
66.00 / hr137,28011,4402,640
68.00 / hr141,44011,7872,720
70.00 / hr145,60012,1332,800
72.00 / hr149,76012,4802,880
74.00 / hr153,92012,8272,960
76.00 / hr158,08013,1733,040
78.00 / hr162,24013,5203,120
80.00 / hr166,40013,8673,200
82.00 / hr170,56014,2133,280
84.00 / hr174,72014,5603,360
86.00 / hr178,88014,9073,440
88.00 / hr183,04015,2533,520
90.00 / hr187,20015,6003,600
92.00 / hr191,36015,9473,680
94.00 / hr195,52016,2933,760
96.00 / hr199,68016,6403,840
98.00 / hr203,84016,9873,920
100.00 / hr208,00017,3334,000
105.00 / hr218,40018,2004,200
110.00 / hr228,80019,0674,400
115.00 / hr239,20019,9334,600
120.00 / hr249,60020,8004,800
125.00 / hr260,00021,6675,000
130.00 / hr270,40022,5335,200
135.00 / hr280,80023,4005,400
140.00 / hr291,20024,2675,600
145.00 / hr301,60025,1335,800
150.00 / hr312,00026,0006,000
155.00 / hr322,40026,8676,200
160.00 / hr332,80027,7336,400
165.00 / hr343,20028,6006,600
170.00 / hr353,60029,4676,800
175.00 / hr364,00030,3337,000
180.00 / hr374,40031,2007,200
185.00 / hr384,80032,0677,400
190.00 / hr395,20032,9337,600
195.00 / hr405,60033,8007,800
200.00 / hr416,00034,6678,000

Utilization moves your rate more than salary does

Two people can cost the same and need very different rates. Take a 75,000 a year cost over 2,080 paid hours. That is 36.06 an hour if every hour is billed. Bill 70% of them and the break-even rate jumps to 51.51. Bill half and it is 72.12. The salary never changed.

This is why a rate built from salary alone comes in too low. The hours nobody pays for still have to be paid for, and the only place that money can come from is the hours you do bill. Check your real figure with the utilization rate calculator before you trust the rate this page gives you.

Margin and markup are not the same thing

A 25% margin means profit is 25% of the price. A 25% markup means profit is 25% of the cost. On a 51.51 cost, the margin version gives 68.68 and the markup version gives 64.39. Quoting the second while promising the first is a quiet way to lose money on a job you thought was fine.

This calculator uses margin on the price, because that is how agencies and consultancies quote. If your finance team works in markup, convert first.

Where the cost figure comes from

Fully loaded cost means salary plus everything on top: payroll taxes, benefits, software, and a share of rent and admin. Salary on its own is usually 20 to 30% short. The labor cost calculator works that number out per person, and it is the right input for this page.

Once the rate is set, the thing that decides whether it held is what you actually tracked against each job. TimeTracker stores a rate per client, project or person, then shows margin per project as hours land, so you find out early rather than at the end.

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Answers

Frequently asked questions

Common queries and answers about the billable rate calculator.

What is a billable rate?
It is the amount you charge a client for one hour of work. It is not what the hour costs you and not what the person is paid. It has to cover their cost, the hours nobody pays for, and the profit you want left over.
How do you calculate a billable rate?
Divide the fully loaded yearly cost by the hours you can actually bill, which gives your break-even rate. Then divide that by one minus your target margin. At 70% utilization and a 25% margin, a 75,000 cost over 2,080 paid hours lands at 68.68 an hour.
Why is my billable rate so much higher than the hourly cost?
Because you cannot bill every hour you pay for. Meetings, sales, admin and leave are real hours with no invoice attached. Spreading that cost over the smaller number of billable hours is what pushes the rate up.
Is margin the same as markup?
No, and mixing them up is how a quote ends up under water. Margin is profit as a share of the price. Markup is profit as a share of the cost. A 25% margin is a 33% markup, so the same number means two different rates.
What is the difference between an effective hourly rate and a billable rate?
The billable rate is what you quote. The effective rate is what you really earned once you divide the money collected by every hour worked, billed or not. The effective rate is always the lower of the two.
What utilization rate should I use?
Use the number you can prove, not the one you hope for. Most agencies and consultancies land between 70 and 85% for billable staff. If you have never measured it, start at 70 and check it against real tracked hours.

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