My coaching clients often ask me for advice and help with setting an hourly rate. While I encourage them to use per-project rather than hourly pricing when talking about budgets with their clients, it’s helpful to have some hourly rate in mind on which to base that project price.
Here is my calculator, in all its math-nerd glory. And remember, this is your minimum hourly rate; your actual rate will be increased based on the value that you provide and the difference you make to your client.
Download Mary Ellen’s Amazing Hourly-Rate Calculator: (XLS) or (PDF)
Here’s what it looks like:
Minimum Hourly Rate Calculator
| Non-reimbursable expenses & overhead | NOTES | |
| Association membership | $ | Association membership: AIIP and your clients’ key association |
| Conferences | $ | Conferences: cost to attend two professional conferences – AIIP and your clients’ key event (registration, travel, hotel, meals) |
| Insurance | $ | Insurance: health, general liability, disability |
| Magazine subs, books | $ | Magazine subscriptions, books: 1 business paper and your clients’ key sources |
| Office equipment | $ | Office equipment: assume new laptop every 3-4 years, plus ~$500/year for software |
| Office supplies/expenses | $ | Office supplies/expenses: telephone, ISP, web hosting, email list hosting, premium social media accounts, etc. |
| Online subscriptions | $ | Online subscriptions: annual fees, any non-transactional expenses you can’t bill back |
| Professional fees | $ | Professional fees: CPA, bookkeeper, attorney, coaching, etc. |
| Rent | $ | Rent: Can base it on % of floor space if you work from home |
| Retirement fund contributions | $ | Retirement fund contributions |
| Salary | $ | Salary: what you want to pay yourself |
| Profit | $ | Profit: 10% of your salary (this is what funds growth and risk-taking!) |
| Taxes | $ | Taxes: set aside at least 35% of anticipated salary |
| Other expenses | $ | Other expenses specific to your situation |
| Total expenses, salary, overhead | $ | |
| # of hours/week you work | ||
| # of billable hours/year | (half your working hours/week multiplied by 45 weeks) | |
| Total expenses / # of billable hours/year | $ | Your MINIMUM hourly rate, before value-pricing |
Wow – this was spot on for my circumstances! Very easy to use and good reminder for earning, spending and saving.