Pricing

Hourly Rate Calculator

Work out the hourly rate you may need to charge to cover your costs, reach your income target, and avoid underpricing your time.

Currency

Desired annual income

Enter the amount you want the business to provide as your annual income.

Annual business costs

Include recurring costs such as insurance, tools, vehicles, software, premises, and administration.

Tax buffer (%)

Add a planning allowance for tax. This is not a tax calculation.

Working weeks per year

Allow for holidays, illness, training, and other time away from work.

Hours worked per week

Use your typical total working hours, including both billable and non-billable time.

Billable time (%)

Estimate the percentage of your working time that can actually be charged to customers.

Estimated Results

Recommended hourly rate

€67

Minimum hourly rate

€58

Annual revenue needed

€74,500

Billable hours per year

1,288

What this means

Minimum rate

€58

Recommended rate

€67

Billable hours

1,288

To support an annual income target of €50,000, cover approximately €12,000 in annual business costs, and include a 25% tax buffer, the business needs to generate approximately €74,500 per year.

Based on 1,288 billable hours per year, the estimated minimum hourly rate is €58. Adding a 15% safety margin gives a recommended rate of approximately €67.

The recommended rate is a planning estimate rather than a rule. Actual pricing may also need to account for materials, travel, specialist equipment, market conditions, job complexity, and the profit margin your business requires.

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Understanding Your Result

How Your Hourly Rate Works

How the minimum rate is calculated

Hourly Rate = Annual Revenue Needed ÷ Billable Hours

The calculator combines your desired income, annual business costs, and tax buffer, then spreads that revenue requirement across the hours you expect to bill to customers.

Not every working hour is billable

Quotes, travel, administration, buying materials, marketing, cancellations, and other tasks can take time without being charged directly to a customer. A realistic billable percentage helps prevent those hours from being forgotten when setting your rate.

Hourly Rate Calculator FAQs

How should a tradesperson calculate an hourly rate?+

A practical starting point is to calculate the annual revenue needed to cover your income target and business costs, then divide that amount by the number of hours you realistically expect to bill to customers.

What are billable hours?+

Billable hours are the working hours that can actually be charged to customers. Time spent travelling, quoting, managing the business, or completing other unpaid tasks is normally not billable.

Why is the recommended rate higher than the minimum rate?+

The calculator adds a 15% safety margin to the minimum rate. This creates additional room for quieter periods, unexpected costs, delays, unpaid time, and variation in actual working conditions.

Does this calculator include tax?+

It includes the tax percentage you enter as a simple planning buffer based on your desired income. It is not a tax calculator and does not account for individual tax rules, allowances, deductions, or business structures.

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