Hourly and day-rate calculator
Find the hourly rate you need
Result
Enter your figures to see the hourly rate you need.
Estimate for planning only. This is not tax, legal, accounting or financial advice. Results depend on the figures you enter. Check all numbers, rates and rules with the official source or a qualified professional before relying on them.
How the rate is worked out
The income you want to keep is increased by the percentage you type. Business costs are added after that, and the set-aside percentage is not applied to those costs. The revenue needed is divided by your billable hours for the year. The day rate, when you ask for one, uses the rounded hourly rate. Press Try an example to load the acceptance figures.
Why billable hours matter
The same income, percentage, costs and weeks off with more billable hours produce a lower hourly rate. Billable hours are the hours you can charge for, not every hour you work.
What is set aside
It is a percentage you choose. Canada Business Kit does not know your tax situation and does not say the amount is enough. Check with the official source or a qualified professional.
Common mistakes
- Counting all hours as billable.
- Forgetting weeks off.
- Forgetting business costs.
A note for Canadian businesses
The tool contains no tax rates and no payroll figures. Check with the official source or a qualified professional.
Questions
What are billable hours?
Hours you can charge a client for. Admin, quoting and travel usually are not billable.
What percentage should I set aside?
The tool cannot tell you. See the official source or a qualified professional.
How do I get a day rate?
Enter billable hours in a day. The day rate is the rounded hourly rate times those hours.
Does the tool include sales tax?
No. You type every figure. The tool does not add a tax.
Why is the check a few dollars off?
The hourly rate is rounded to the cent, then multiplied by the hours.
Is this a market rate?
No. It is only the arithmetic on the figures you enter.
Can I save scenarios?
Saving needs a free account. Without one, your entries stay on this page.