How to use this calculator
- Enter annual owner compensation target, annual overhead, annual business profit target, annual billable hours.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Before sales tax and personal income tax; nonpayment, platform fees and unbillable capacity must be reflected in your inputs.
Worked example
With annual owner compensation target = 60000, annual overhead = 20000, annual business profit target = 10000, annual billable hours = 1500, required hourly billing rate is approximately 60.
What the result means
Build a billing-rate target from capacity and costs rather than total working hours.
Common questions
How should I interpret required hourly billing rate?
Build a billing-rate target from capacity and costs rather than total working hours.
What should I check before using this result?
Before sales tax and personal income tax; nonpayment, platform fees and unbillable capacity must be reflected in your inputs.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.