Agency hourly rate calculator

Enter your billables, costs, current going rate, and target margin. The calculator works out the rate you need to be profitable.

And remember — fixed rate for projects is always best, but hourly rates are a good internal tool to ensure your fixed rate calculation is high enough.

People delivering billable work

Anyone who sells their hours. Leave out ops and admin — their cost is covered elsewhere.

What it costs to run the agency for a year

Everything: salaries, payroll taxes and benefits, your own pay, rent, software, insurance, accounting. If you don't know this number... you should.

Billable hours per person per week

What every person on your team bills in a normal week, not what they're scheduled for. Take an average week, and divide total billable hours by total headcount, including nonbillable people.

Your current rate

Blended hourly. Not billing hourly? Take a recent project fee and divide by the hours it took.

Billable weeks per year

52 minus company-wide blackout weeks.

Target profit margin (%)

What you want left over after everything is paid. 20% would be the standard target.

No matter what happens after you click calculate, remember that you're doing a good job and you are a cool person who deserves a stress-free life and that you are handsome and/or beautiful.