Calculate your billable hours, utilization rates, and ideal billing rate.
Please note: Make sure to write out entire figures (e.g. 700000 for overheads) and double-check them to avoid getting a false estimate in your report. All calculations are in USD.
Number of full-time employees in your company:
What is the average number of weekly work hours per employee?
For example, the most common are 40-hour work weeks, where employees are expected to work 8 hours a day for 5 days a week.
What is the average number of weekly work hours spent on non-billable work per employee?
These are the hours you don't bill to your clients — for example, your employees spend 9 hours on non-billable work in total; consisting of 5.5 hours a week on internal meetings, 2.5 hours on paid breaks, and 1 hour on other internal work.
What is the average number of days off per year per employee?
For example — employees at your agency have an average of 29 days off; consisting of 24 paid vacation days, an average of 4 for sick leave, and 1 day on other forms of absence.
How much do you spend yearly on labor costs in USD?
This is the yearly gross salary you pay your employees. For example, if you have 20 employees with an average yearly salary of $100,000, your total labor costs would be $2,000,000 per year.
Do you know your total yearly overhead costs in USD?
If you don't, click No and proceed to choose a common estimate that may apply to your agency.
What are your estimated yearly overhead costs?
For example, for every dollar you spend on labor, you spend 75% on overhead: rent, utilities, insurance, office supplies, accounting fees, etc. So if you spend $1,000,000 on labor, your overhead is estimated at $750,000.
What are your total yearly overhead costs?
For example, you spend $750,000 yearly on overhead: rent, utilities, insurance, office supplies, accounting fees, etc. If you don't know your exact overhead costs, please go back and select "No" as an answer.
What is your target markup per employee in percentage?
For example, you want to earn 25% on top of labor costs.
What is the average hourly rate you currently charge your clients?
For example, you currently charge your clients $90 per hour.
Done! Fill in your contact details to receive your Billable Hours report.
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