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Contractor hourly rate calculator

How do you calculate a contractor hourly rate?

Add the pay you want and a year of business overhead, then build in profit: when profit is a share of revenue, divide by (1 − profit share). Divide that by the hours you can actually bill, not the hours you work. Example: ($85,000 + $38,000) ÷ 0.90 = $136,667 a year, over 1,296 billable hours = $105 an hour.

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