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Hourly Rate Calculator: What your hour must cost
Your desired salary, operating costs, and the time you can actually bill determine the hourly rate below which you will lose money.
Net hourly rate
79.51 €
- Billable hours per year
- 1,176
- Cost per hour
- 72.28 €
- Gross hourly rate
- 95.41 €
- Net monthly revenue required
- 7,792 €
Calculates in your browser. No input is saved or transmitted. All information provided without guarantee. For binding advice, please consult your tax advisor.
How it Works
- 1
Enter your desired annual income before taxes.
- 2
Sum up all operating costs for the year.
- 3
Estimate your working days and the portion of time you can bill to clients.
- 4
Set a surcharge for profit and risk. The calculator shows the net and gross hourly rates.
How it's calculated
Billable hours = Working days × Hours per day × Billable percentage.
Net hourly rate = (Annual income + Operating costs) ÷ Billable hours × (1 + Surcharge). The gross rate additionally includes VAT, which you show to private clients.
The three most common mistakes
Most low hourly rates result from the same assumptions:
- Calculating with 8 hours times 250 days. After vacation, sick days, and holidays, often only 210 days remain, and only a portion of that is billable.
- Confusing your own salary with profit. Your income is a cost item; profit is added on top.
- Forgetting costs that only occur once a year: insurance, chamber fees, tax consulting, vehicle maintenance.
With employees
For employees, you calculate the same way, but using labor costs instead of desired salary: gross wage plus ancillary wage costs, divided by the person's billable hours, plus a share of overhead costs. In Austria, this is called the 'Mittellohnpreis' (K3 sheet according to ÖNORM B 2061) in the construction sector.
Frequently Asked Questions
How many hours can I bill per year?
With 210 working days, 8 hours per day, and 70% billable time, it's around 1,176 hours. This is significantly less than many assume.
What is a typical hourly rate in the trades?
This depends on the trade, region, and costs. More important than the market price is your minimum threshold: below this, you are working at a loss. The calculator shows this threshold.
Do I need to charge for travel time?
If you don't charge for it separately, it must be included in your hourly rate. That's what the billable percentage is for.
Will my entries be saved?
No. The calculator runs entirely in your browser.
From hourly rate to post-calculation
In DivineMind, you create quotes with K3/K7 calculations, your team clocks in on-site, and the post-calculation shows planned vs. actual for labor, materials, and equipment.
Solution for construction and tradesLink to this Calculator
You are welcome to recommend the calculator on your website, blog, or forum. Please copy this link:
<a href="https://divinemind.ai/en/tools/hourly-rate-calculator">Hourly Rate Calculator</a>More Calculators
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