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Rate calculator

Work out the hourly rate, day rate and smallest job charge that cover your pay, your costs and the hours you can't bill for.

Hourly rate-

Day rate-

Minimum job charge-

Income the business has to bring in per year
Of that, set aside for tax
Hours worked per year
Hours you can bill per year
Break-even rate before the cushion
Billable hours in a working day
Hours worked for each hour billed

Want the worked pricing guides behind this? The Pricing Set, $12.99.

Your pay Take-home pay you want per year ($)After tax. What you would pay yourself in a salaried job. Tax set-aside (%)A rough share of profit to put aside for income tax plus CPP contributions (Canada) or self-employment tax (US). Leave those out and the rate comes out low. Ask a bookkeeper for your number.

Your costs Business costs per year ($)Insurance, vehicle, fuel, phone, software, tools that wear out, licences, payment and platform fees. Leave out materials you charge to the customer.

Your time

Working weeks per yearAfter holidays and sick days.Hours worked per weekAll of it, including admin.

Working days per weekNon-billable time (%)Quoting, travel, admin, invoicing, finding work.

Cushion and small jobs Cushion on top of break-even (%)Covers slow weeks, a job that runs long and money to reinvest. Zero gives the bare break-even rate.

Shortest job you take (hours)Travel and setup per job (hours)Unpaid time every job costs you, however short.

How it works. Income needed = take-home ÷ (1 − tax set-aside) + business costs. Billable hours = weeks × hours per week × (1 − non-billable share). Hourly rate = income needed ÷ billable hours, plus the cushion. Day rate = hourly rate × billable hours in a working day. Minimum job charge = hourly rate × (shortest job + travel and setup).

Why the non-billable share is large. Billable hours are usually far fewer than hours worked. Clio's 2024 Legal Trends Report, built from its law-practice software data, puts the average lawyer's billable time at 37% of an eight-hour day. A trade isn't a law firm, but the gap between hours worked and hours billed shows up in most solo work. Track a real week and put your own share in.

The rate is a floor, the lowest price at which the work is worth doing. Price jobs that save a customer a large problem well above it, and check what others nearby charge for the same job before you settle on a number.

General information for small service businesses. Not legal, tax or financial advice. Everything you type stays in this browser: it is saved on this device only and never sent anywhere, apart from the email address if you sign up.

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