Free Tool
True Hourly Rate Calculator
Your billable rate isn't your real rate. Once admin, marketing, email, and revisions are counted alongside client work, most solopreneurs earn far less per hour than their invoice implies. Enter your revenue and every hour it took, and see the number your billable rate has been hiding.
A pattern worth knowing about: one solopreneur on Reddit described a product that felt like a clear win, until they actually tracked their time and realized the effective hourly rate had dropped below minimum wage. Another described working what felt like 16-hour days while the actual hours quietly disappeared into an email inbox. Tracking real hours, not just billable ones, is the only way to catch that before it becomes a pattern.
Total money earned this month or on this project.
All hours worked, not just billable ones
Defaults to the US federal minimum wage. Replace with your state or country's rate for accuracy.
How this calculator works
We divide the revenue you entered by every hour you logged, billable and non-billable alike. That's your true hourly rate. For comparison, we also show your billable-only rate (revenue divided by just billable hours), which is usually the higher, more flattering number most rate conversations stop at.
Frequently Asked Questions
What is a 'true hourly rate' and how is it different from my billable rate?
Your billable rate is what you charge per hour of client work. Your true hourly rate divides the same revenue across every hour the work actually took, including admin, marketing, email, and revisions. For most solopreneurs the true rate is meaningfully lower than the billable rate.
Why should I count admin, marketing, and email time in my rate?
Because that time isn't optional overhead, it's part of the labor that produced the revenue. One solopreneur described feeling like they worked all day but couldn't say where the hours went until they actually tracked it, and most of it turned out to be buried in email and admin rather than billable work.
How do I compare my true hourly rate to minimum wage?
Enter your local or state minimum wage in the optional field. The calculator shows how many times over (or under) minimum wage your true rate lands, so you can see the gap in real terms rather than as an abstract percentage.
What should I do if my true hourly rate is below minimum wage?
Start by looking at the hours breakdown. A common fix is reducing non-billable time (fewer free revisions, tighter scope, templated admin) before raising prices. Our freelance rate calculator can help you set a rate that's actually priced to cover your real hours.
Is this the same story other solopreneurs have run into?
Yes. A recurring pattern on r/Solopreneur and r/smallbusiness is someone who felt like a product or project was a clear win, until they tracked their actual hours and found the effective hourly rate had quietly dropped below minimum wage.
Does this calculator store or share my numbers?
No. Everything runs in your browser and nothing is sent anywhere. The 'Copy results' button just copies text to your own clipboard so you can paste or share it yourself.
How often should I recalculate my true hourly rate?
Whenever your workload or hours shift meaningfully, for example after taking on a bigger client, adding a new service, or feeling like you're busier but not earning more. A quarterly check is a reasonable default for most solopreneurs.
Related resources
Pricing strategy
If your true rate surprised you, your pricing needs more than a guess.
Mustard Seed helps solopreneurs rebuild pricing, scope, and positioning around the hours work actually takes, not just the hours on the invoice.
Book a consultation