Harvest
Time Tracking
Sign up free

Hourly Rate Calculator for Entrepreneurs

Entrepreneurs often struggle with setting the right hourly rate due to fluctuating expenses and income goals. Harvest offers a solution to accurately calculate and adjust hourly rates, factoring in non-billable hours and business expenses.

Try Harvest Free

What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
$
Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

How this hourly rate calculator works

It works back from the income you need to the rate you must bill, accounting for the hours you can't bill.

  • Billable hours/year = working weeks × hours per week × billable %.
  • Break-even rate = (target income + business expenses) ÷ billable hours.
  • Recommended rate = break-even plus a 20% buffer for taxes, slow periods, and profit.

Raising your billable percentage or trimming expenses lowers the rate you need.

Hourly Rate Calculator for Entrepreneurs by Harvest

Explore how Harvest helps entrepreneurs calculate accurate hourly rates by tracking billable and non-billable hours and adjusting for expenses.

Harvest hourly rate calculator for entrepreneurs interface

Hourly Rate Calculator for Entrepreneurs FAQs

  • To calculate your hourly rate, consider your desired annual income, total business expenses, and the number of billable hours you can realistically work. Include time for non-billable activities, which Harvest helps track, to ensure all aspects of your work are considered in your rate.

  • An hourly rate calculator requires inputs such as desired annual income, expected billable hours, total business expenses, and tax obligations. Harvest allows you to track non-billable hours, which should also be factored in to avoid underpricing your services.

  • Include all fixed and variable business expenses in your calculations. This ensures that your hourly rate covers operational costs and contributes to your profit margins. Harvest's detailed expense tracking can aid in accurately determining these costs.

  • Non-billable hours, such as time spent on marketing, administrative tasks, and client meetings, are essential to include in your rate to ensure you are compensated for all aspects of your business. Harvest helps track these hours, providing a comprehensive view of your workload.

  • Common mistakes include underestimating expenses, overestimating billable hours, and neglecting non-billable activities. These can lead to financial shortfalls. Harvest's reporting tools help identify where time is spent, assisting in refining your rate calculations.

  • Harvest offers flexible rate tracking, allowing entrepreneurs to adjust rates based on client type and project complexity. This flexibility ensures competitive pricing and maximizes profitability by accommodating varying client needs.

  • It's commonly recommended to set aside 15-20% of your income for taxes, considering both self-employment and federal/state income tax obligations. Harvest's detailed tracking can help ensure you're prepared for these expenses.