So you got an email from a prospective client, and they want to know your hourly rate. Or maybe they want a flat quote, and you're wondering what rate to base it on.

But how do you figure out your hourly rate?

Well, we've got you covered! We put together a handy, cat-infused calculator to give you an answer.

hours

If you take off more holidays than are listed here, you can add them to the number of vacation days. We'll ask you about those next.

days
\$

For the sake of simplicity, this number should be before taxes and also include any business expenses you might have.

%

You may spend all day in front of the computer, but not every hour will appear on a client’s invoice. Answering administrative emails, writing proposals, and looking at cat videos are all important but are usually not billable. In our experience, only about 50–60% of our time is actually billable.

Tip: Keep meticulous track of your hours, so you can get a better understanding of your billable/non-billable time. You might be surprised by how much of your time is taken up by administrative tasks.

If you want to earn \$ per year while working hours per week and taking time off for holidays and days of vacation, and you bill % of your time, then your rate should be \$' + rate + '/h Explain this math

Here’s an explanation of our math. Italicized values are those submitted by you in the questionnaire. It might be easier to read this from the bottom up.

Hourly Rate = Annual Salary / Billable Hours Per Year

Billable Hours Per Year = ( Hours Per Year - Hours Off Per Year ) * (Percentage of Billable Time / 100)

Hours Per Year = Hours Per Week * 52

Hours Off Per Year = ( Holidays + Vacation Days ) * Hours Per Day

Hours Per Day = Hours Per Week / 5
(As you can see, we assume a five day work week.)