Hourly billing rate calculator

Annual labor cost

Annual business overhead

Additional annual operating cost

Working weeks per year

Scheduled hours per week

Billable utilization (%)

Target gross margin (%)

Calculate Copy target rate

— Enter costs, schedule, utilization, and margin.

• $60k labor + $20k overhead · 50×40 weeks · 75% billable → 1,500 billable hours
• $80,000 recoverable → break-even ≈ $53.33/hr
• At 20% target gross margin → ≈ $66.67/hr (difference ≈ $13.33/hr)

Billing-rate model from your assumptions. Does not invent regional wages or market rates. Target gross margin is not net profit.

Scheduled hours = weeks×hours/week. Billable hours = scheduled×utilization%. Recoverable cost = labor+overhead+other. Break-even $/hr = cost÷billable. Target $/hr = break-even÷(1−margin%). Example: $60k labor + $20k overhead, 50×40 weeks, 75% billable, 20% margin → 1,500 billable hours · $53.33 break-even · $66.67 target.