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Hourly rate calculator

Work out the minimum hourly rate you need to reach your target income. You can change every assumption. This is a simplified calculation.

Assumptions
Result: Fill in the fields to see the result.
Simplified calculation: tax, deductions and pension differ per situation and country.

Everything is calculated in your browser. Nothing is sent or stored.

How it works and what to know

We add your target yearly income and your business costs and put a buffer for tax and pension on top. That is the revenue you need per year.

Then we work out your billable hours: working hours per week, minus time for admin and finding clients, times the number of working weeks (52 minus your weeks off). Revenue divided by billable hours is your hourly rate.

The buffer is a fixed percentage on top of your income and does not take any country’s tax system into account. Use the result as a starting point and discuss the details with an accountant.

Indicative, not tax advice

These tools give an indication and do not replace advice from an accountant or the tax authority. Rules can change and differ per situation and per country.

Frequently asked questions

How do I calculate my hourly rate?

Divide the revenue you need per year (target income plus costs plus buffer) by the number of hours you can really bill. Don’t count 40 hours a week for 52 weeks: holidays, sickness and admin drop out.

What is non-billable time?

Time you work but cannot charge for: writing quotes, admin, finding clients, training and meetings. Many business owners bill only part of their working hours. Enter an honest percentage here.

What is the buffer for tax and pension for?

As a business owner you pay your own taxes and arrange your own pension and disability cover. The buffer is a percentage on top of your income to leave room for that. How high it should be differs per country and situation.

Rate including or excluding VAT?

As a business service provider you usually quote your rate excluding VAT, and VAT is added on the invoice. This tool shows both so you can compare.

How accurate is this calculation?

It is a simplified model. Tax, deductions, pension and expenses differ per situation and country. Use the result as a direction, not as an exact figure.

Done calculating? Let FactuurPro do it.

VAT, numbering and due dates are put on your invoices automatically. Create a free account.

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