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How to use
- Enter Hourly rate.
- Enter Annual billable hours.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Annual revenue = hourly rate × annual billable hours
Example
A rate of 100 per hour across 1,200 billable hours gives 120,000 annual revenue and a 10,000 arithmetic monthly average.
Important notes
Revenue is not net profit; subtract software, contractors, marketing, fees and taxes when building a full financial forecast.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Annual revenue | 100 × 1200 | 120,000 |
| Monthly average | 120000 ÷ 12 | 10,000 |
Frequently asked questions
Should I always assume 1,200 billable hours?
No. Use prior-year history or a realistic plan based on workdays and billable utilization.
Is the result a mandatory client price?
No. It is a planning result from your inputs; final pricing depends on scope, market, contract, taxes and risk.
Should I use monthly or annual figures?
Keep all inputs on the same period so annual income is not mixed with monthly hours or expenses.