How to use
- Enter the take-home income you want and annual business expenses.
- Enter your effective tax rate, weeks off and the share of working hours you can bill.
- Read the minimum rate and adjust.
Worked example
$60,000 take-home, $8,000 expenses, 25% tax, 6 weeks off, 40-hour weeks at 60% billable: $88,000 revenue over 1,104 billable hours ≈ $79.71 per hour.
Supported formats and limits
| Input | Income goal, expenses, tax, time off, billable share |
|---|---|
| Output | Hourly and day rate, breakdown |
| Engine | Required revenue ÷ billable hours |
Limitations
- Tax is simplified to one effective rate; your real tax depends on where you live.
Questions
How is the rate calculated?
Pre-tax income = take-home ÷ (1 − tax rate). Required revenue = pre-tax income + expenses, plus an optional buffer. Billable hours = (52 − weeks off) × hours per week × billable share. Rate = revenue ÷ billable hours. $60,000 take-home, $8,000 expenses, 25% tax, 6 weeks off and 40-hour weeks at 60% billable gives $88,000 over 1,104 hours, about $79.71 an hour.
How is the day rate worked out?
Day rate = hourly rate × (hours per week ÷ 5), so a 40-hour week makes an 8-hour day.
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