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.

1. Work out the profit required
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
2. Work out how many hours are worked each year
Enter the number of days worked each weekdays ?
Less - Time off each year ?
Public holidays days
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 ?
3. Work out non-chargeable time
Invoicing, tax returns, ordering stock, etc.
hours per-day
Taking sales calls, answering enquiries by email, working in shop, etc.
hours per-day
Customer support
Non-chargeable assistance such as dealiing with product faults, general enquiries, etc.
hours per-day
Other non-chargeable time
hours per-day
Total non-chargeable time
hours per-day
Total non-chargeable time
hours per-year
Please check your entries. The number of hours cannot be more than the hours worked each day!

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 $
Days worked
Hours worked
Chargeable hours
Non-chargeable hours