Hourly Calculator

We add a 25% benefits and overhead allowance to your salary, then add your bonus and annual vesting equity. We divide that total by your available working hours: 260 weekdays minus your days off, multiplied by eight hours. With the default inputs, $320,000 divided by 1,816 hours gives a baseline of about $176 per hour.

Include your annual base salary, expected annual bonus and the fair market value of equity that vests in one year. For example, a $200,000 equity grant vesting evenly over four years contributes $50,000 per year. Use a realistic equity estimate; its eventual value can change.

Independent professionals cover expenses that an employer would otherwise pay, including benefits, taxes, insurance, equipment and office space. The calculator adds 25% to salary as a starting allowance. Your actual expenses and billable time may differ, so use the result as a planning baseline.

Start with your baseline, then consider the scope, level of responsibility, commitment and time you spend between engagements. Smaller commitments often need a higher hourly rate. The engagement table applies the calculator’s suggested multipliers and estimates monthly retainers using four weeks per month, rounded to the nearest $100.

A project fee works well when deliverables, milestones and the approval process are clear. Estimate the required time using your baseline rate, allow for uncertainty, and agree on how scope changes will be handled. Revisit the fee if the scope changes materially.

Yes. Scope, specialization, urgency, duration and weekly commitment can justify different rates. Use a consistent baseline and make the reasons for any adjustment clear. Market benchmarks provide context, but do not account for every detail of your engagement.

Review your rate when renewing an engagement or when your responsibilities, expertise, expenses or demand change. Compare your effective earnings with the time you actually spend, including preparation and administration, to check whether you are undercharging.

Connect your fee to the agreed responsibilities, relevant experience and outcomes you will help the client achieve. Be clear about what the engagement includes, how much time is reserved and what additional work would cost.

An urgency premium can make sense if a project requires reserved capacity, disrupted commitments or work outside your usual schedule. Discuss the timeline and any premium before accepting the work.

Clarify their budget and priorities. You may be able to reduce the scope, adjust the timeline or change the weekly commitment while keeping the engagement sustainable. If the budget cannot support the work, it is reasonable to decline.