How It Works
Three simple steps to get accurate calculations
Enter Your Revenue Details
Input your hourly rate, billable hours, working weeks, and any fixed project revenue.
Add Business Expenses
Include all annual costs: software, hosting, subcontractors, and miscellaneous expenses.
Review Your Financial Analysis
Get detailed profit calculations, effective rates, and actionable business insights.
Calculator Inputs
Enter your web development business details to calculate annual income and profit projections.
Share Your Scenario
Copy link with your current inputs
Revenue & Time
Your standard billable rate charged to clients
Hours spent on client work that you can bill for
Total working weeks (typically 48-50 after vacation/holidays)
Revenue from fixed-price projects, retainers, or recurring contracts
Time spent on admin, marketing, learning, and non-billable activities
Annual Expenses
Development tools, design software, licenses, and subscriptions
Server costs, domain registrations, and hosting services
Payments to freelancers, agencies, or other contractors
Office expenses, equipment, insurance, and other business costs
Combined income tax rate including federal, state, and self-employment tax
Web development income calculation
Key Financial Metrics
Hourly Rate Analysis
Revenue Breakdown
Expense Breakdown
Summary Metrics
Business Analysis
Profitable Business
Business Optimization Tips
- • Track billable vs. non-billable hours to optimize efficiency
- • Consider value-based pricing for larger projects
- • Automate repetitive tasks to increase billable hour percentage
- • Build relationships for recurring clients and retainer work
- • Invest in skills that command higher hourly rates
- • Review and optimize your expense structure regularly
- • Set aside 25-30% of income for taxes and business savings
- • Consider productizing services for scalable income streams
Financial Planning
Tax Planning: With $30,750.00 in annual taxes, ensure you're setting aside funds quarterly.
Emergency Fund: Aim to save 3-6 months of expenses ($11,987.50 - $23,975.00) for business stability.
Growth Investment: Consider reinvesting 10-15% of profits into tools, training, or marketing to grow your business.
Frequently Asked Questions
What is the difference between hourly rate and effective hourly rate?
How do I calculate my break-even hourly rate?
What expenses should I include in my calculations?
How can I improve my profit margins?
Should I include unpaid hours in my calculations?
What's a good profit margin for web development?
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