How To Calculate Your Hourly Rate The Right Way

26 Dec 2025 · 1 min

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This content was created by Feras Alhlou. This content was uploaded by Feras Alhlou. This is a YouTube video titled "How To Calculate Your Hourly Rate The Right Way" (created 2025-12-26T21:00:10Z). The excerpt is a spoken tutorial by a single presenter (labeled SPEAKER A) explaining how to calculate an hourly rate using a simple formula: hourly rate = total monthly revenue target ÷ total monthly billable hours. The presenter walks through an example using "Andy": a $10,000 monthly revenue target and 160 possible hours × 60% billable = 96 billable hours, yielding $10,000 ÷ 96 ≈ $104/hr, then rounded to $110/hr for breathing room. The content focuses on freelancer/consultant pricing and rate-setting.

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Your hourly rate comes from a simple formula. Hourly rate equals total monthly revenue target divided by total monthly billable hours. Let's walk through Andy's numbers so you can see how this works. His monthly revenue target is $10,000. Now, in terms of billable hours, you take 160 and multiply it by 60%. That gives us 96 hours. So if Andy can realistically bill 96 hours a month, the math looks like this. $10,000 divided by 96, that gives us $104 an hour. Let's round that up to $110 an hour for some breathing room, and it sounds better.