Bill Rate
Calculate Bill Rate instantly with the exact formula and a worked example.
Bill Rate
Employee pay per hour$
Overhead (taxes, leave, office)%
Target margin%
Hourly bill rate for the client
2,000$
Cost per hour
1400$
Markup on cost
42.9%
Multiplier on employee pay
2
More about: Bill Rate
What it calculates
The “Bill Rate” calculator computes Hourly bill rate for the client in $ from 3 parameters: employee pay per hour ($), overhead (taxes, leave, office) (%), target margin (%).
Helps estimate your tax burden, check deductions, and plan tax payments.
Example calculation
With parameters Employee pay per hour = 1,000 $, Overhead (taxes, leave, office) = 40 %, Target margin = 30 % the result is 2,000 $.
How to use
- Enter employee pay per hour, overhead (taxes, leave, office) and target margin — each field above is adjustable with a slider.
- Hourly bill rate for the client ($) is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
How does sales tax work in the US?
Sales tax is added to the price of goods at checkout and varies by state and locality. For example: California 7.25%, New York ~8%, Texas 8.25%, Florida 6%. Some states have no statewide sales tax.
How do I add sales tax to a price?
Multiply the pre-tax price by the tax rate to get the tax amount, then add it to the price. Example: $1,000 × 7.25% = $72.50 tax, for a $1,072.50 total.
How do I extract tax from a tax-inclusive total?
Divide the total by (1 + rate). Example: a $1,072.50 total at 7.25% gives a $1,000 pre-tax price, so the tax was $72.50. Use the “tax included” toggle to do this automatically.
What is VAT and how is it different?
VAT (Value Added Tax) is used across the EU and many other countries, typically 17–27%, and is usually shown included in the displayed price. US sales tax is normally added at checkout instead.
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