Determining the right hourly rate for your consulting services is crucial for both profitability and market competitiveness. This calculator helps you factor in your desired income, business expenses, billable hours, and profit margin to arrive at a sustainable hourly rate.
Your Estimated Consulting Hourly Rate:
function calculateHourlyRate() {
var desiredAnnualIncome = parseFloat(document.getElementById("desiredAnnualIncome").value);
var annualBusinessExpenses = parseFloat(document.getElementById("annualBusinessExpenses").value);
var billableHoursPerWeek = parseFloat(document.getElementById("billableHoursPerWeek").value);
var weeksWorkedPerYear = parseFloat(document.getElementById("weeksWorkedPerYear").value);
var desiredProfitMargin = parseFloat(document.getElementById("desiredProfitMargin").value) / 100; // Convert percentage to decimal
var totalBillableHoursPerYear = billableHoursPerWeek * weeksWorkedPerYear;
if (isNaN(desiredAnnualIncome) || isNaN(annualBusinessExpenses) || isNaN(billableHoursPerWeek) || isNaN(weeksWorkedPerYear) || isNaN(desiredProfitMargin) || totalBillableHoursPerYear <= 0) {
document.getElementById("hourlyRateDisplay").innerHTML = "Please enter valid numbers for all fields.";
return;
}
var totalRevenueNeeded = desiredAnnualIncome + annualBusinessExpenses;
var revenueNeededBeforeProfit = totalRevenueNeeded / (1 + desiredProfitMargin);
var hourlyRate = revenueNeededBeforeProfit / totalBillableHoursPerYear;
document.getElementById("hourlyRateDisplay").innerHTML = "$" + hourlyRate.toFixed(2);
}