Harvest
Time Tracking
Sign up free

Revenue Per Hour Calculator

Harvest helps teams and freelancers enhance profitability by providing precise time and expense tracking, laying the groundwork for accurate revenue analysis.

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

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

Understanding Revenue Per Hour: A Core Productivity Metric

Revenue Per Hour (RPH) is a critical productivity metric that measures the amount of revenue generated for every hour of work, helping businesses gauge efficiency and profitability. The formula is straightforward: divide the total revenue generated by the total hours worked. RPH offers more insight than merely tracking activity volume, as it directly ties financial output to labor input, highlighting areas for operational improvement.

Unlike Revenue Per Employee (RPE), which measures revenue per staff member, RPH focuses on the hourly value of work. In 2024, the cross-industry average RPE was about $350,000, but benchmarks for RPH vary significantly. For example, a surgical practice should aim for $3,000 per hour, while an aesthetician room might target $250 to $350 per hour. Understanding these differences is crucial for businesses to set realistic productivity goals.

Calculating Your Revenue Per Hour: A Step-by-Step Guide

To calculate your Revenue Per Hour (RPH), start by defining the period for analysis, such as a month or a year. Gather data on total revenue generated during this time and the total hours worked. Use the formula: Total Revenue / Total Hours Worked. For example, if your business generates $100,000 over 1,000 hours, the RPH is $100.

Accurate time tracking and revenue attribution are essential for precise RPH calculations. Harvest, known for its time-tracking capabilities, can support this process by providing detailed records of billable and non-billable hours, ensuring that every hour is accounted for. Proper data collection enables businesses to compare their RPH against industry benchmarks and make informed decisions about pricing and resource allocation.

Maximizing Your Revenue Per Hour: Strategies for Enhanced Efficiency

Improving your Revenue Per Hour (RPH) involves focusing on activities that directly contribute to revenue generation. High-value tasks, such as client engagements and closing deals, should be prioritized. Automation tools can help reduce time spent on administrative tasks, freeing up more hours for revenue-driving activities.

Training and coaching are also pivotal in enhancing employee skills, ensuring they are equipped to maximize productivity. Adjusting pricing strategies to reflect market demands and optimizing service offerings can further boost RPH. Implementing incentive programs can motivate employees to achieve higher output per hour, aligning their goals with business objectives.

Industry Benchmarks and Strategic Applications of RPH

Industry benchmarks for Revenue Per Hour (RPH) offer valuable insights for performance evaluation. For instance, a medical spa might target $600-$1,000 per hour, while a technology company aims for a higher RPE due to scalable business models. These benchmarks help businesses set realistic goals and make strategic decisions.

RPH informs pricing adjustments, service mix evaluations, and staffing levels. By comparing RPH with industry standards, companies can identify competitive advantages and areas needing improvement. Additionally, the impact of company size and age on RPH is notable, with larger or older companies potentially having different performance metrics. Regularly revisiting these benchmarks ensures that businesses remain aligned with market dynamics.

Revenue Per Hour Calculation with Harvest

See how Harvest supports accurate revenue per hour calculations through detailed time tracking and expense management.

Screenshot showing Revenue Per Hour calculation with Harvest's time tracking.

Revenue Per Hour Calculator FAQs

  • To calculate revenue per hour, divide the total revenue generated by the total hours worked. For annual calculations, use the formula: Annual Revenue ÷ 2,040 hours (standard full-time work hours per year).

  • Improve revenue per hour by focusing on high-value tasks, optimizing pricing strategies, and leveraging automation. Training and incentive programs can also enhance employee productivity.

  • Revenue per hour is crucial as it links financial performance to labor input, highlighting efficiency and profitability. It helps businesses make informed decisions about pricing and resource allocation.

  • Yes, benchmarks vary by industry. For example, a surgical practice might aim for $3,000 per hour, while an aesthetician room targets $250 to $350 per hour. These benchmarks help set realistic productivity goals.

  • Harvest excels at tracking time and expenses, providing the detailed data needed for accurate revenue analysis. This supports businesses in calculating metrics like revenue per hour.

  • Factors include pricing strategy, efficiency, service mix, and workforce composition. Technology and automation can also impact RPH by freeing up time for high-value activities.

  • Revenue per hour focuses on gross income, while profit per hour considers costs and taxes, providing a more realistic net earning per hour.