Understanding your charge-out rate is crucial for the financial health of your freelance business or consultancy. It's the rate you bill your clients for your services. A well-calculated charge-out rate ensures you cover all your costs, pay yourself a salary, and make a profit. This calculator helps you determine a suitable rate by considering your desired salary, business expenses, and billable hours.
.calculator-wrapper {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0,0,0,0.1);
}
.calculator-inputs {
display: grid;
grid-template-columns: repeat(auto-fit, minmax(250px, 1fr));
gap: 15px;
margin-bottom: 20px;
}
.form-group {
display: flex;
flex-direction: column;
}
.form-group label {
margin-bottom: 5px;
font-weight: bold;
color: #333;
}
.form-group input {
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
}
button {
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 1.1rem;
transition: background-color 0.2s ease;
}
button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
background-color: #e9ecef;
border: 1px solid #ced4da;
border-radius: 4px;
font-size: 1.2rem;
text-align: center;
color: #495057;
}
.calculator-result strong {
color: #007bff;
}
function calculateChargeOutRate() {
var desiredSalary = parseFloat(document.getElementById("desiredSalary").value);
var annualFixedCosts = parseFloat(document.getElementById("annualFixedCosts").value);
var annualVariableCosts = parseFloat(document.getElementById("annualVariableCosts").value);
var billableDaysPerYear = parseFloat(document.getElementById("billableDaysPerYear").value);
var hoursPerBillableDay = parseFloat(document.getElementById("hoursPerBillableDay").value);
var resultElement = document.getElementById("result");
resultElement.innerHTML = "";
if (isNaN(desiredSalary) || isNaN(annualFixedCosts) || isNaN(annualVariableCosts) || isNaN(billableDaysPerYear) || isNaN(hoursPerBillableDay)) {
resultElement.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (desiredSalary < 0 || annualFixedCosts < 0 || annualVariableCosts < 0 || billableDaysPerYear <= 0 || hoursPerBillableDay <= 0) {
resultElement.innerHTML = "Please ensure salary and costs are not negative, and billable days/hours are positive.";
return;
}
var totalAnnualCosts = annualFixedCosts + annualVariableCosts;
var totalAnnualOutgoings = desiredSalary + totalAnnualCosts;
var totalBillableHoursPerYear = billableDaysPerYear * hoursPerBillableDay;
if (totalBillableHoursPerYear === 0) {
resultElement.innerHTML = "Total billable hours cannot be zero. Please check your billable days and hours per day.";
return;
}
var hourlyRate = totalAnnualOutgoings / totalBillableHoursPerYear;
// Add a buffer for profit/unexpected costs (e.g., 10%)
var profitMargin = 0.10; // 10% profit margin
var adjustedHourlyRate = hourlyRate * (1 + profitMargin);
resultElement.innerHTML = "Your estimated hourly charge-out rate is: £" + adjustedHourlyRate.toFixed(2) + " (including a 10% profit margin).";
}