What should I charge per hour?

Your hourly rate needs to cover more than the time you spend working with clients. It also needs to support your income, cover business expenses and allow for the hours you can’t charge for.

This calculator helps you estimate a starting rate based on your goals and the billable time you realistically have available.

How to use it

Enter your desired annual pay before income tax, your annual business expenses and any additional business profit you want to generate.

Then add your total weekly working hours, the hours spent on non-billable tasks and your planned weeks off. Include time for admin, marketing, quoting, holidays and illness.

You can also enter your current hourly rate to see how it compares with the amount needed to meet your targets.

Understanding your result

Your estimated rate is the annual revenue you need divided by your annual billable hours.

It assumes every planned billable hour is sold and paid. Test a quieter scenario to see how fewer client hours affect the rate you need.

This is a cost-based starting point. Your experience, the value you deliver and demand for your services also matter when setting prices.

Want pricing that supports your business?

We can help you look beyond an hourly rate and build a clearer picture of your costs, capacity, profit goals and cash flow—so your pricing supports both your business and the income you want to earn.

What should I charge per hour? | Prosper Business

What should I charge per hour?

Find an hourly rate that supports your income goals, covers business costs and allows for the time you cannot bill.

All money amounts are NZD. Figures start at 0; cleared boxes count as 0. Your current rate is optional.

Shows your hourly charge with standard 15% GST added. Enter expenses excluding recoverable GST when registered. Ticking this box does not convert your entered figures.

The annual amount you want the business to generate for your work, before personal income tax, student loan repayments and personal deductions.

Include costs such as software, insurance, accounting, rent and business ACC. Exclude your own pay and amounts entered below. If GST registered, exclude recoverable GST; otherwise use full costs.

Optional extra profit before tax, above your pay target and expenses. Enter 0 if not needed. This is a dollar amount, not a profit margin.

All hours you plan to work in a working week, including both client work and non-billable tasks.

Include admin, marketing, quoting, training and other time you cannot charge to clients. Do not include time off counted below.

Allow for holidays, public holidays, illness and other time away. Combine partial weeks into equivalent weeks.

Enter your current rate excluding GST if registered, or the full rate if not registered. Leave blank to skip the comparison.

Before you set your rate

  • A starting point: This is a cost-based planning estimate for a solo business owner. It does not set a market price or account for the value of your expertise, demand or competitors.
  • Before tax: Your pay and additional profit targets are before income tax. This calculator does not calculate tax, student loans or personal deductions. It does not apply the drawings calculator’s 20% or 30% tax savings guide. Allow for business ACC in expenses and discuss your targets with your accountant.
  • Realistic billable time: The result assumes you sell and collect payment for every entered billable hour, at this rate. Allow for gaps between jobs, cancellations, discounts and unpaid work when choosing your hours.
  • GST: If registered, enter expenses excluding recoverable GST and your current rate excluding GST. The inclusive price assumes standard-rated services at 15%; zero-rated or exempt services need different treatment.
  • Count costs once: Include costs that your hourly fees must recover. Do not also include costs recovered separately from clients. If you already include your pay in expenses, remove it before entering a separate pay target.
  • Profit is not cash flow: Loan principal, new borrowing, asset purchases and payment timing are not separately modelled. An additional profit target is not a complete cash buffer or funding plan.

General guidance only, not personalised accounting, tax or financial advice. Review your assumptions and pricing with your accountant.

Disclaimer: This calculator provides general planning guidance, not personalised accounting, tax or financial advice. It does not calculate income tax or personal deductions, guarantee client demand, or replace a cash flow forecast. Review your assumptions and pricing with your accountant.