Charge out pricing by the hour
This calculator will help you to work out how much you should charge for someone's time. It takes into account how much profit you want to make from them, a contribution to overheads and also unproductive time such as meetings and paperwork. You might be surprised how quickly it adds up.
To use this calculator, simply enter their salary and an estimate of overheads and time spent working on productive and non-productive tasks to see what your real costs are. You can use this for working out a charge-out rate for an employee or for yourself.
|Profit you want to make from this person||$||per year||?|
|Overhead recovery from this employee||$||per year||?|
|Total contribution||$||per year||?|
|Total salary or wages paid to this employee||$||per year|
|Total income required||$||per year|
|Enter the number of days worked each week||days||?|
|Less - Time off each year||?|
|Other (sick days, etc)||days|
|Actual number of days worked||per year|
|Enter the number of hours worked each day||?|
|This is the number of work hours available||per year||?|
Invoicing, tax returns, ordering stock, etc.
Taking sales calls, answering enquiries by email, working in shop, etc.
Non-chargeable assistance such as dealiing with product faults, general enquiries, etc.
Other non-chargeable time
|Total non-chargeable time||hours per-day|
|Total non-chargeable time||hours per-year|
The charge out rate is $ per hour
This is the final charge rate that you need to include in invoicing as a MINIMUM. If the amount shown is below the industry average then great, you can be safely assured you are making money off this person. If the amount shown is above the industry average then that is bad, as they are costing more than you are charging. Time to review your figures.
Here's a summary of the results of your answers.
|Total income required||$||per-year|