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Digital Marketing

Agency Hourly Rate Calculator

Set a billable hourly rate from monthly costs, billable capacity, and your target margin.

Your numbers

Example values are prefilled. Use the same reporting period for all inputs.

Billable hours per month: 480
Billable hours per month
480
Required monthly revenue
₹4,00,000.00
Required billable hourly rate
₹833.33

The formula

Billable hours = Available hours × Utilization / 100; Required revenue = Costs / (1 − Target margin / 100); Hourly rate = Required revenue / Billable hours.

Worked example

₹3,00,000 monthly costs, 800 hours at 60% utilization, and a 25% margin require ₹4,00,000 revenue across 480 billable hours: ₹833.33 per hour.

Frequently asked

Is margin the same as markup?
No. Margin is profit divided by revenue. A 25% target margin means dividing cost by 0.75, not adding 25% to cost. Include expected non-billable work in utilization.

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