Mary Ellen’s Amazing Hourly-Rate Calculator

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

 

 

4 thoughts on “Mary Ellen’s Amazing Hourly-Rate Calculator

  1. Pingback: The 7 Deadly Sins of Pricing | The Reluctant Entrepreneur

  2. Pingback: The 7 Deadly Sins of Pricing | The Reluctant EntrepreneurThe Reluctant Entrepreneur

  3. Pingback: “You’re charging WHAT?!?” | The Reluctant Entrepreneur

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