How it works
Start from what you want to take home. Tax comes out of profit, so the calculator grosses that income up for tax, adds your business expenses to get the revenue you need for the year, and divides it by the hours you can bill. This is a planning estimate, not tax advice. A real tax bill depends on where you live, how your business is set up and what you can deduct, so check the tax rate with an accountant.
annual revenue target = take-home income ÷ (1 − tax rate) + business expenses
billable hours per year = billable hours per week × weeks
hourly rate = annual revenue target ÷ billable hours per year
day rate = hourly rate × 8
monthly revenue target = annual revenue target ÷ 12
Worked example
Example numbers, not typical values: you want to take home $80,000.00 a year, your business costs $12,000.00 a year, you set aside 25% of profit for tax, and you work 30 hours a week for 46 weeks, all of them billable.
- 1Annual revenue target$80,000.00 ÷ (1 − 25%) + $12,000.00 = $118,666.67
- 2Billable hours per year30 × 46 = 1,380
- 3Hourly rate$118,666.67 ÷ 1,380 = $85.99
- 4Day rate (8 hours)$118,666.67 × 8 ÷ 1,380 = $687.92
- 5Monthly revenue target$118,666.67 ÷ 12 = $9,888.89
What hourly rate should I charge?
This page gives no number. Rates vary by trade, skill, location and client, and no single figure fits everyone. Treat the result as a floor: the lowest rate that meets your income goal with the hours you entered. Compare it with what clients in your field actually pay.