How It Works
Three simple steps to get accurate calculations
1
Enter Your Revenue Details
Input your hourly rate, billable hours, working weeks, and any fixed project revenue.
2
Add Business Expenses
Include all annual costs: software, hosting, subcontractors, and miscellaneous expenses.
3
Review Your Financial Analysis
Get detailed profit calculations, effective rates, and actionable business insights.
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Frequently Asked Questions
What is the difference between hourly rate and effective hourly rate?
Your hourly rate is what you charge clients. Your effective hourly rate is your actual profit divided by total hours worked (including unpaid admin time). This shows your true earnings per hour.
How do I calculate my break-even hourly rate?
Break-even rate is your total annual expenses divided by billable hours per year. This is the minimum rate you need to charge to cover all costs without making a profit.
What expenses should I include in my calculations?
Include all business expenses: development tools, hosting, software licenses, subcontractor payments, equipment, office costs, insurance, and professional development. Don't forget to factor in taxes.
How can I improve my profit margins?
You can increase profit by raising rates, reducing expenses, increasing billable hours efficiency, or adding fixed-price projects that provide higher margins than hourly work.
Should I include unpaid hours in my calculations?
Yes, unpaid hours (admin, marketing, learning) affect your effective hourly rate. Including them gives you a realistic view of your true earnings per hour worked.
What's a good profit margin for web development?
A healthy profit margin for web development is typically 20-40%. Below 15% may indicate pricing or expense issues that need attention for long-term sustainability.
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Results are estimates for informational purposes only. Consult professionals for important decisions.