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Hourly Rate Calculator (no longer available – please see update info below)
Ever wonder what your absolute hourly rate would have to be in order for you to pay for all of your business *and* personal expenses with only your business to bring in the income? Well, wonder no more!
Here is a really wonderful hourly rate calculator that is a straight forward, plug-in some numbers and and hit the “calculate” button to help you come up with not only your hourly rate for a profit but also your “break-even” hourly rate as well. In other words, the minimum you could earn per hour in order to just break even and not see any profit. No profit = no business. No business = no quitting your day job. Simple equations for difficult obstacles indeed.
From the FreelanceSwitch.com/rates web page:
What is This?
We have developed this hourly rate calculator to give you a guide based on your costs, number of billable hours and desired profit. It is a simple tool for you to play with.
Remember your hourly rate should always take into account factors like market demand, industry standards, skill level and experience – things that unfortunately we can’t put into a calculator!
This is an eye opening and sometimes fear inducing concept for many creative entrepreneurs. After all – if you knew how much you *should* be making, then you would pretty much have to figure out a way to get your hourly rate to the place it needs to be, right?
without fear by sam UL via Flickr
You can do it. I believe in you!
So tell us: Have you used a rate calculator like this before? Did you agree with the results?
It looks like the Freelance Switch calculator is no longer available, but the kind folks at Motiv told me about their free online calculator available here: http://motivapp.com/freelance-hourly-rate-calculator
It’s a really great tool and will help figure out a basic budget for any business – I highly recommend it!
From the Motiv website:
How This Calculator Works
The Freelance Hourly Rate Calculator will help you determine what you need in order to support the lifestyle that you desire.
By entering information into each field, you can calculate an hourly rate based on your costs, number of billable hours, and desired annual profit.
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