Taxes, payroll and business
Hourly and daily rate
Find the minimum rate to cover your target income, operating costs and reserve with your billable time.
Annual budget before personal income tax · rates rounded up to dollars
Your business
Costs exclude owner pay, sales tax and variable expenses. Enter the amount you want to retain in the business separately as a reserve. Do not include your target income again in operating costs.
Amounts from $0 to $2,000,000. Weeks: 1–52; days: 1–7 (whole numbers); hours: 0.25–24 in 0.25 steps; billable time: 0–100% (whole number).
Your minimum rate
Minimum hourly rate · before sales tax
$67 / hour
- Minimum daily rate · before sales tax
- $534
Your annual capacity
- Available hours
- 1,800 h
- Billable hours
- 1,080 h
- Equivalent billable days
- 135
Required annual revenue
- Annual target income before tax
- $60,000
- Annual fixed operating costs
- $12,000
- Optional annual reserve
- $0
- Total to invoice before sales tax
- $72,000
Target income is before personal income tax, not take-home pay. Sales tax, personal income tax, social contributions, variable costs, unpaid invoices and collection delays are excluded. Budget these needs separately.
Method and related tools
Required revenue = target income + fixed costs + reserve. Available capacity = weeks × days × hours. Billable time = capacity × billable share; it subtracts administration, sales and other unpaid work once. Weeks already exclude holidays and interruptions. Each rate is rounded up from the precise annual requirement. The daily rate covers a fully billed day; it does not multiply the already-rounded hourly rate.
Target income is before personal income tax, not take-home pay. Sales tax, personal income tax, social contributions, variable costs, unpaid invoices and collection delays are excluded. Budget these needs separately.