Method, not market rates

Hourly rate calculator for contract reviewers.

Work back from the income you want to keep to the hourly rate you need to charge, with each step shown.

Hourly rate from the income you want to keep

Example values are shown so you can see the working. Replace them with your own. Estimate method: take-home grossed up for your tax set-aside, plus business costs, divided by billable hours.

Hourly rate needed
$89.58
Revenue needed
$86,000
Billable hours
960
Work shownrecomputed as you type
Profit needed = take-home ÷ (1 − set-aside) = $60,000 ÷ (1 − 25%) = $80,000.00
Revenue needed = profit + costs = $80,000.00 + $6,000 = $86,000.00
Billable hours = weeks × hours per week = 48 × 20 = 960
Hourly rate = revenue ÷ billable hours = $86,000.00 ÷ 960 = $89.58

The tax set-aside in this example is $20,000 a year. Use the set-aside calculator to estimate your own.

A planning aid, not tax or legal advice.

How it works

  1. Profit needed = income you want to keep ÷ (1 − your tax set-aside).
  2. Revenue needed = profit needed + business costs.
  3. Billable hours = weeks worked × billable hours per week.
  4. Hourly rate = revenue needed ÷ billable hours.
  5. This is arithmetic on your own inputs. It does not say what the market pays.

Questions

Why count billable hours instead of working hours?

Time spent on admin, finding work, questions and unpaid rework is real work you do not invoice. Dividing by billable hours only is what makes the rate cover it.

What goes in business costs?

Costs you carry to do the work: software, professional liability and other insurance, continuing education, equipment, memberships and licence fees. Use last year’s actuals if you have them.

Where does the tax set-aside come from?

You choose it. The US self-employed tax set-aside calculator on this site estimates self-employment tax from IRS figures; your income tax rate depends on your whole return.

Does this tell me what to charge?

No. It tells you the rate your own numbers require. What clients will pay is a separate question this tool does not answer.

A planning aid, not tax or legal advice. Runs in your browser; the figures you type are not sent to CORAA or stored.

Related: Hourly rate to project price converter, US self-employed tax set-aside calculator. All freelance tools.

Join the CORAA reviewer waitlist

CORAA prepares audit files for US CPA firms. Reviewers are independent contractors who clear what the software flags, with evidence and a note, paid per file under a contractor agreement.

  • Files are offered to you; you accept or decline
  • No exclusivity: you can work for others
  • The firm reviews and signs; CORAA never does

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