Free hourly rate calculator
Find out what you need to charge per hour to cover your income and your business costs. Just enter your own numbers and the result updates as you type.
1What you want to earn
2What your business costs per year
Costs per year€19,000
3The hours you can bill
Working days per year216
Billable hours per year1,209 h
How this is calculated
First we add up your income and your costs. That's what you need to earn in a year. Then we work out how many hours you can actually bill. We start with 365 days and take out weekends, holidays, annual leave and sick days. We multiply what's left by your hours per day, and then take out the time no client pays for. Divide what you need to earn by those hours and you get your minimum rate. Your margin goes on top. We round both rates up to the next full euro.
The starting numbers aren't made up. The 216 working days come from Gründerplattform, a German start-up guide backed by KfW. The 30 % comes from IWW, which found that planning offices spend 30 to 35 % of their time on work they can't bill. You can change any of them to fit your own year.
Sources: Gründerplattform · IWW
Read more: Setting your rate · Billable hours
Common questions
Why not divide by 2,000 hours?
You won't actually bill 2,000 hours a year. Once you take out weekends, holidays, annual leave and sick days, you're left with roughly 216 working days. And even then, not every hour is billable. Emails, quotes, bookkeeping and finding new work can easily take up a third of your time. Your hourly rate needs to cover those hours too.
Is the income before or after tax?
Before tax. Think of it like a salary: enter what you'd want to earn in a year. Health insurance and pension go under costs, because when you're employed, your employer usually pays part of them.
Does VAT go into the rate?
No, this rate doesn't include VAT. You add VAT on top when you bill the client, and then pass it on to the tax office.
What margin should I add?
Your minimum rate only covers the year you planned, and things rarely go exactly to plan. A margin gives you some room for slow months, clients who pay late and projects that take longer than expected. 10 % is a good place to start. If you often work for a fixed price, go a bit higher.
What is a typical hourly rate for an architect?
Honestly, it depends too much on where you work, how big your office is and what your role is. An average wouldn't tell you much about your own business, so this calculator uses your numbers instead. If you're in Germany, the architects' chambers publish suggested hourly rates by role. But the rate is yours to set: the HOAI doesn't fix one.