Agency Hourly Rate Calculator
Costs + utilization + margin = real billable rate
📚 Learn more — how it works, FAQ & guide Click to expand
Learn more — how it works, FAQ & guide
Click to expand
Agency Hourly Rate Calculator
Set the right billable rate. Cost-plus formula factors salary loaded with benefits + overhead, then divides by realistic billable hours, plus margin. The result is usually 3-4× your raw hourly cost.
How to use this tool
- 1
Annual cost
Salary + benefits + overhead.
- 2
Utilization
Realistic billable %.
- 3
Margin
Target profit on top of cost.
Frequently Asked Questions
What is utilization rate?
Billable hours ÷ available work hours. Industry healthy: 65-75%. Includes admin, sales, training, vacation. Above 85% sustained = burnout.
Should I bill cost rate × markup, or worth-of-output?
Both. Cost-plus protects you from running at loss. Value-based wins on premium clients. Pick higher of the two for your floor rate.
Why so much higher than my "salary÷2080"?
Salary÷2080 ignores: benefits (1.3×), overhead (rent, software, insurance), unbillable time (50% of paid hours), profit. Real billable rate = 3-4× salary÷2080.
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100% Privacy. This tool runs entirely in your browser. Your data is never uploaded to any server.