Calculating Your Rate

Work out the minimum you must charge.

In this lesson you will

Calculate a minimum hourly rate
Compare with the market

Key concepts

income targetbusiness costsplatform feesbillable hours

The lesson

Start from what you need to earn each month, add business costs (internet, power, software) and allow for platform fees.

Divide by realistic billable hours — not all working hours are paid.

Compare with market rates for your skill and level; if the market rate is lower, improve skills, niche or efficiency.

Step by step

Set your income target.
List business costs.
Estimate billable hours.
Calculate and compare.

Worked calculation

Calculating a minimum hourly rate

Working back from what you need to earn to what you must charge.

Monthly figures in USD (illustrative; your costs and market differ)
Item	Working	Amount
Personal income needed	your monthly target	600
Business costs	internet 40 + power 30 + software 20	90
Revenue needed after a 10% platform fee	(600 + 90) ÷ 0.9	766.67
Billable hours	20 days × 5 billable hours	100
Minimum hourly rate	766.67 ÷ 100	≈ 7.67, round up to 8

Explanation

Only about five of each working day's hours are billable; the rest goes to finding work, communication, admin and learning.

This is a floor, not a target. Compare it with market rates for your skill: if the market pays more, charge more; if less, sharpen your niche, skills or speed.

Check your understanding

100 hours × 8 = 800; after the 10% fee, 720 — enough for 600 income plus 90 costs, with a little margin.

Practice activity

Calculate your minimum rate.

Expected result: A justified minimum rate.

Check your understanding

Why use billable hours, not all working hours?

Show answer
Time finding work and doing admin is not paid.
What must the rate allow for besides income?

Show answer
Business costs and platform fees.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.