Consulting rate calculator
For consultants, agencies, and anyone who bills clients by the hour. Start from what you want to earn, add your costs, and account for the hours you can actually bill. The result is the minimum hourly rate that gets you there.
How the math works
First we work out the revenue you need: your desired pay, grossed up so there's enough left after setting money aside for taxes, plus your business costs. Then we work out your billable hours: weeks worked × hours per week × the share of those hours you can actually bill. Revenue needed ÷ billable hours = your minimum rate.
The tax percentage here is just a set-aside to keep you safe. Your real tax depends on your business structure, deductions, and where you live, so check with a tax professional.
Why most people undercharge
The most common mistake is assuming every working hour is billable. Answering email, quoting jobs, driving, bookkeeping, and marketing all take time. Many service businesses bill well under 100% of their hours, so if you price as though you'll bill 40 hours every week, you'll fall short.
Check it against reality
Once you've set a rate, compare it with what actually happens. Your profit and loss report shows real revenue and real costs. Apsis builds it automatically from your bank feed, so you can see whether your rate is working month by month.
Books that keep themselves current
Apsis connects to your bank, suggests categories you review, and sends invoices with your terms and automatic reminders. $19/month after a 30-day free trial.
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