CORE MBA

Billable Rate

Billable Hourly Rate Calculator

Billing

Establish the minimum billable rate to cover all operational expenses and target profits.

Your Required Rate$150.12
Target Gross$16,250
Billable Hours108h

Strategic deep theory

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THE FREELANCER TRAP

Most service providers fail because they price for 'Time' instead of 'Value' and 'Overhead'. If you charge $50/hr because you want to make $50/hr, you are technically earning about $18/hr.

You are ignoring the 'Shadow Costs' of business: taxes, software, healthcare, unbilled sales time, and the inevitable equipment rot. An elite billable rate must be at least 3x your desired take-home pay to ensure the business itself remains solvent.

UTILIZATION REALITY

No human is billable 40 hours a week. Between admin, marketing, sales, and deep-thinking gaps, most service businesses operate at a 50-60% 'Utilization Rate'.

If you calculate your prices based on a 40-hour billable week, you are mathematically guaranteeing a deficit. You must price for the 'Gap' to protect your lifestyle and your company's survival.

TACTICAL Q&A

Q: How do I raise rates without losing clients?
A: You don't 'raise prices'; you 'increase stakes'. Move from being a commodity Pair of Hands to a Strategic Brain. Solving a $100k problem for $10k is always a bargain, regardless of how many hours it takes.
Q: Should I switch to value-based pricing?
A: Only if you can quantify the result. If you can't measure the impact, stay with a high-margin hourly rate to protect your downside. Value-based pricing is high-reward but high-risk.

TERMS: UTILIZATION RATE VS BILLABLE RATE

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UTILIZATION RATE: The percentage of your working time that is actually paid for by a client.

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BILLABLE RATE: The dollar amount you charge per hour to cover your costs, your profit, and your 'Idle Time' insurance.

Contextual glossary

ARPU[+]
ROI[+]
KPI[+]

Diagnostic report

Interpretation

"Target requires $150.12/hr."

Identified pattern

AUTHORITY PRICING

Solution mastery required:

High-Ticket Positioning

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