Formula & method
Hourly rate = (income target + annual costs) ÷ (1 − tax reserve rate) ÷ billable hours
Billable hours exclude holidays, administration, sales time and other non-client work.
Assumptions
- Inputs remain in your browser and are not saved.
- Rates are converted to the payment frequency shown.
- Results are rounded for display; internal calculations retain precision.
Example calculation
Example
A realistic utilisation assumption prevents an apparently busy year from missing the income target.
Important
Educational estimates only — not financial, tax or legal advice.