Determine your total annual income goal
Add annual business expenses
Add annual taxes and benefits you need to cover
Calculate your total annual billable income target
Estimate your billable hours per year
Divide your total annual billable income target by your billable hours
Use the formula: Hourly Rate = Annual Income Target รท Billable Hours
Adjust for experience, market demand, and profit margin
Recalculate regularly as expenses and workload change