How this calculation works
Annual revenue needed is target pre-tax pay plus overheads. Divide by working weeks × weekly hours × billable percentage to find the minimum hourly revenue target before VAT.
A worked example
R360 000 target pay plus R120 000 overheads, divided by 1 000 billable hours, needs R480 per hour before VAT and personal income tax.
Assumptions & limitations
- Target pay is before personal tax; use the gross salary or freelance tax tool to budget tax separately. Non-billable admin, leave and gaps in work reduce billable hours. Bad debts, profit buffers and VAT are excluded unless included in your targets.
