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Agency Hourly Rate & Pricing Calculator

Calculate a profitable hourly rate and project fee from your costs.

Enter your income goal, overhead, tax rate, and billable hours to get a minimum hourly rate and a project price with a buffer.

Use the tool

Use your own estimate. Rules differ by country.

Most people cannot bill 40 hours. Admin and sales take time.

Subtract holidays, sick days, and time off.

How Agency Hourly Rate & Pricing Calculator works

An agency hourly rate and pricing calculator works out the minimum rate you need to charge to cover your income goal, business costs, taxes, and a profit margin, based on the number of hours you can realistically bill. Many freelancers and small agencies underprice because they divide a target salary by forty hours a week and forget unpaid time, expenses, and time off. This tool solves that by starting from your goals and your true billable capacity, then showing a break-even and a target hourly rate, and optionally converting the rate into a project fee with a buffer.

Enter the annual take-home income you want, your yearly business costs, an estimated tax rate, your billable hours per week, and the weeks you work per year. Add a profit and growth margin and, if you are quoting a project, the estimated hours and a buffer for revisions and risk. The tool calculates the revenue you must earn, the hourly rate, and the suggested project price. Compare the result with market rates in your niche and region, and adjust your positioning, services, or capacity if the rate is above what the market pays.

Knowing your numbers helps you price with confidence, decline unprofitable work, and plan for taxes, tools, and slow periods instead of reacting to them. A realistic rate also protects your time and quality of work, because you are not forced to overwork to make ends meet. The calculation is a simplified model and does not replace an accountant, since tax and deductions vary by country and business structure. All figures are calculated in your browser and are not sent or stored anywhere.

Frequently asked questions

How do I calculate an hourly rate as a freelancer?

Add your desired income, adjusted for tax, to your annual business costs, add a profit margin, and divide by your realistic billable hours per year, which is weekly billable hours times working weeks.

Why should I use billable hours instead of 40 hours a week?

Much of a work week goes to sales, admin, learning, and communication that clients do not pay for. Using billable hours prevents underpricing and burnout.

What is the buffer for on a project quote?

The buffer covers revisions, delays, and scope creep. Many freelancers add ten to twenty percent, but the right amount depends on the project's risk and how clearly its scope is defined.

Is the tax estimate accurate?

It is a simple estimate that uses the percentage you enter. Tax rules, deductions, and social contributions differ by country and structure, so consult an accountant for accurate planning.

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