/* Calculator Styles */
.br-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 20px;
background: #f9fafb;
border: 1px solid #e5e7eb;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
}
.br-row {
display: flex;
flex-wrap: wrap;
gap: 20px;
margin-bottom: 20px;
}
.br-col {
flex: 1;
min-width: 250px;
}
.br-input-group {
margin-bottom: 15px;
}
.br-label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #374151;
font-size: 14px;
}
.br-input {
width: 100%;
padding: 10px;
border: 1px solid #d1d5db;
border-radius: 6px;
font-size: 16px;
box-sizing: border-box;
transition: border-color 0.2s;
}
.br-input:focus {
border-color: #2563eb;
outline: none;
box-shadow: 0 0 0 3px rgba(37, 99, 235, 0.1);
}
.br-btn {
width: 100%;
padding: 12px;
background-color: #2563eb;
color: white;
border: none;
border-radius: 6px;
font-size: 16px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
margin-top: 10px;
}
.br-btn:hover {
background-color: #1d4ed8;
}
.br-results {
background: #ffffff;
padding: 20px;
border-radius: 8px;
border: 1px solid #e5e7eb;
margin-top: 25px;
display: none;
}
.br-result-header {
font-size: 18px;
font-weight: 700;
color: #111827;
margin-bottom: 15px;
border-bottom: 2px solid #f3f4f6;
padding-bottom: 10px;
}
.br-result-grid {
display: grid;
grid-template-columns: repeat(auto-fit, minmax(200px, 1fr));
gap: 20px;
}
.br-result-item {
background: #f0f9ff;
padding: 15px;
border-radius: 6px;
text-align: center;
border: 1px solid #bae6fd;
}
.br-result-label {
font-size: 13px;
text-transform: uppercase;
letter-spacing: 0.5px;
color: #0369a1;
margin-bottom: 5px;
}
.br-result-value {
font-size: 24px;
font-weight: 800;
color: #0c4a6e;
}
.br-info-box {
margin-top: 20px;
padding: 15px;
background-color: #fffbeb;
border-left: 4px solid #f59e0b;
color: #92400e;
font-size: 14px;
}
/* Article Styles */
.br-article {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, sans-serif;
line-height: 1.6;
color: #333;
}
.br-article h2 {
color: #1f2937;
margin-top: 30px;
font-size: 24px;
}
.br-article p {
margin-bottom: 15px;
}
.br-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.br-article li {
margin-bottom: 8px;
}
function calculateBusinessRate() {
// Inputs
var salary = parseFloat(document.getElementById('desiredSalary').value);
var overheads = parseFloat(document.getElementById('annualOverheads').value);
var margin = parseFloat(document.getElementById('profitMargin').value);
var weeksOff = parseFloat(document.getElementById('weeksOff').value);
var daysWeek = parseFloat(document.getElementById('daysPerWeek').value);
var hoursDay = parseFloat(document.getElementById('billableHours').value);
// Validation
if (isNaN(salary)) salary = 0;
if (isNaN(overheads)) overheads = 0;
if (isNaN(margin)) margin = 0;
if (isNaN(weeksOff)) weeksOff = 0;
if (isNaN(daysWeek) || daysWeek <= 0) daysWeek = 5;
if (isNaN(hoursDay) || hoursDay <= 0) hoursDay = 5;
// 1. Calculate Total Cost Base
var baseCost = salary + overheads;
// 2. Add Profit Margin Logic
// Formula: Revenue = Cost / (1 – Margin%)
// If margin is 20%, Cost is 80% of Revenue.
var totalRevenueNeeded = 0;
if (margin < 100) {
totalRevenueNeeded = baseCost / (1 – (margin / 100));
} else {
// Edge case: 100% margin is impossible mathematically in this formula
totalRevenueNeeded = baseCost * 2; // Fallback
}
// 3. Calculate Capacity
var totalWeeks = 52 – weeksOff;
if (totalWeeks 0) {
hourlyRate = totalRevenueNeeded / totalBillableHours;
}
var dailyRate = hourlyRate * hoursDay;
var weeklyRevenue = totalRevenueNeeded / totalWeeks;
// Display Results
document.getElementById('resHourly').innerText = formatCurrency(hourlyRate);
document.getElementById('resDaily').innerText = formatCurrency(dailyRate);
document.getElementById('resWeekly').innerText = formatCurrency(weeklyRevenue);
// Update Text Summary
document.getElementById('txtIncome').innerText = formatCurrency(salary);
document.getElementById('txtOverhead').innerText = formatCurrency(overheads);
document.getElementById('txtTotalRevenue').innerText = formatCurrency(totalRevenueNeeded);
document.getElementById('txtTotalHours').innerText = Math.round(totalBillableHours);
document.getElementById('brResults').style.display = 'block';
}
function formatCurrency(num) {
return '$' + num.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
}
Why Use a Business Rate Calculator?
Determining the correct service rate is one of the most critical challenges for freelancers, consultants, and service-based businesses. Undercharging can lead to burnout and financial instability, while overcharging without justification can alienate potential clients. A Business Service Rate Calculator works backward from your financial goals to determine exactly what you need to charge per hour or per day to sustain your business.
The "Billable Hours" Trap
A common mistake when calculating business rates is assuming a 40-hour work week translates to 40 billable hours. In reality, successful service businesses typically only bill 50% to 75% of their working time. The rest is consumed by non-billable tasks such as:
- Marketing and Business Development
- Administrative tasks and Accounting
- Client communication and support
- Skill development and training
This calculator accounts for your "True Capacity" by asking for your actual billable hours per day, ensuring your rate covers the time you spend running the business, not just the time executing the work.
Understanding the Inputs
To get the most accurate result from the calculator, consider the following definitions:
1. Desired Annual Net Income
This is the salary you want to take home. It should be comparable to what you would earn in a salaried position for similar work, ideally higher to compensate for the risk of self-employment.
2. Annual Business Overheads
These are the fixed costs of running your business regardless of how much work you do. Examples include office rent, software subscriptions (CRM, Adobe, Hosting), professional liability insurance, internet costs, and equipment depreciation.
3. Desired Profit Margin
Profit is distinct from your salary. It is the money reinvested into the business for growth or kept as a buffer. A healthy service business often aims for a 10-20% profit margin on top of all costs (including your salary).
4. Weeks Off (Vacation & Sick Leave)
Employees get paid vacation; business owners must budget for it. If you plan to take 4 weeks of vacation and anticipate 1 week of sick leave, enter '5'. Your calculated rate will be higher to ensure you generate your annual revenue target in the remaining 47 weeks.
How to Calculate Your Rate Manually
If you wish to verify the math, the formula used is:
(Desired Salary + Overheads) ÷ (1 – Profit Margin %) = Total Revenue Goal
Total Revenue Goal ÷ Total Billable Hours per Year = Required Hourly Rate
By using this reverse-engineering method, you ensure that every hour you bill contributes proportionally to your overheads, your salary, and your business profit.