Hourly Billing Rate Calculator







Formula

The formula to calculate the Hourly Billing Rate is:

\[ \text{Billing Rate} = \left( \frac{\text{Annual Salary}}{\text{Capacity}} \right) \times \text{Multiplier} \]

Description

The billing rate is the amount charged per hour of service. It is calculated by dividing the annual salary by the total number of hours worked in a year (capacity) and then multiplying by a multiplier to cover overheads and profit margin.

Example Calculation

Let's assume the following:

Step 1: Calculate Billing Rate:

\[ \text{Billing Rate} = \left( \frac{\$90,000}{2,080} \right) \times 4 = \$173.08 \text{ per hour} \]

Therefore, the Billing Rate is $173.08 per hour.