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Reliable Hourly Rate Calculator

Harvest is a reliable tool for accurately calculating hourly rates, offering features that simplify time tracking and invoicing for freelancers and teams.

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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.

Reliable Hourly Rate Calculator with Harvest

Discover how Harvest helps calculate precise hourly rates, addressing costs and billable hours for freelancers and teams.

Harvest platform showing hourly rate calculation features

Reliable Hourly Rate Calculator FAQs

  • To convert an annual salary to an hourly rate, divide the annual salary by 2,080, which is the total number of work hours in a year for a standard 40-hour workweek. This provides a baseline hourly rate before accounting for benefits, taxes, and other factors.

  • When calculating an hourly rate, consider desired income, business expenses, taxes, and the cost of benefits. Factor in non-billable hours and apply a profit margin to ensure sustainability and growth.

  • Harvest assists in calculating hourly rates by tracking billable hours and managing overtime rates. It simplifies invoicing and provides detailed reports to help you set competitive rates that cover all expenses and taxes.

  • A good profit margin for setting an hourly rate typically ranges from 10-20% of job costs. This margin ensures business growth and sustainability by providing a buffer beyond break-even costs.

  • To include non-billable hours, estimate the total time spent on administrative tasks, marketing, and professional development. Subtract this from total working hours to determine actual billable hours and adjust your rate accordingly.

  • It's advisable to review your hourly rate at least once a year or whenever significant changes occur in your costs, demand, or experience level. Regular reviews ensure your rate remains competitive and profitable.

  • Yes, Harvest can track overtime by allowing you to create separate tasks with different billable rates. This helps manage and understand the impact of overtime on your overall hourly calculations.