Hourly Rate Calculator
Find the billable rate you need to cover expenses, overhead, and hit your target take-home income.
Track time and bill accurately
LedgerPro automates client bookkeeping workflows, tracks billable hours, and handles invoicing — built for bookkeepers and CPA firms.
Try LedgerPro free →How this calculator works
This calculator starts with your desired take-home income, adds your annual business expenses, applies an overhead buffer for unforeseen costs, then divides by your estimated billable hours.
The result is the minimum hourly rate you should charge to meet your financial goals. Most bookkeepers and CPA firms undercharge because they price from the market rate down instead of from their costs up.
Track your actual billable hours for a month before committing to annual estimates. Review and adjust quarterly as your expenses and capacity change.
Frequently asked questions
How do I estimate billable hours?
Most solo practitioners bill 60-70% of their working hours. At 2,080 work hours/year, that is roughly 1,250-1,450 billable hours.
What counts as overhead?
Software subscriptions, office space, insurance, continuing education, marketing — anything that keeps the practice running but is not a direct project cost.
Should I round up my rate?
Yes. Round to the nearest $5 or $10 increment. Clients expect clean numbers and the buffer covers scope creep.