OwnerKit toolsTrue Hourly Rate Calculator
Calculate your break-even and target charge-out rates from annual pay, labour burden, overhead and billable hours.
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How this is calculated
Start with what the business needs to pay you over a year. Use realistic working weeks and billable time after quoting, admin and travel. Allocate annual labour and overhead across the billable hours, then price the hours in this job.
Frequently asked questions
Should I count every working hour as billable?
Count only the hours customers actually pay for. Include unpaid administration and sales time in working hours so the billable share reflects both.
Is owner pay the same as profit?
Owner pay is included in the cost of doing the work. Profit here is the amount left after that pay, labour burden and overhead.
How do I use the rate for a multi-hour job?
Enter the number of billable hours and the hourly selling rate you intend to charge. The output and quote use those hours rather than a single hourly amount.
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