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How to use
- Enter Income target after business expenses.
- Enter Business expenses.
- Enter Billable hours.
- Calculate, then review the period, scope and assumptions before using the result for pricing or planning.
How it is calculated
Hourly rate = (income target + expenses) ÷ billable hours
Example
An income target of 90,000 plus 30,000 expenses needs 120,000 revenue; over 1,200 billable hours the required rate is 100.
Important notes
This formula does not add personal income tax or a separate profit buffer unless included in the target; define exactly what the rate must cover.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Revenue needed | 90000 + 30000 | 120,000 |
| Required rate | 120000 ÷ 1200 | 100 |
Frequently asked questions
Should I add a buffer for slow months?
If you want a more conservative rate, increase the income target or expected expenses to include an explicit buffer.
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.