RateMate Hourly Rate Calculator allows you to calculate the hourly rate you must be charging your customers in order to be profitable. Figuring out your hourly rate is a process that every business owner or service provider should go through in order to make sure that they are profitable on every job.
Based on the technology in EstiMate Sign Pricing Software, produced by EstiMate Software Corp. (of which Mark Smith is president and developer of EstiMate Software), this software based it's calculations on three key areas to assure your profitability:
1) Your Overhead. Every business has a "burn rate" -- the costs associated with doing business are very different for every individual. RateMate allows you to specify your overhead either in a simple way or a detailed way, and then RateMate breaks that figure down into your annual "burn rate" based on area #2 -- your Billable Hours.
2) Your Billable Hours. Far different from the hours you are "open" every day, these are the actual hours you can bill a client for when working on a project. You and your employees have tasks to do outside of billable time -- so even if you have two full time employees plus yourself working 8-hour workdays, it's likely that you can only bill a combined 15-18 hours a day (not 3 x 8 or 24)! RateMate allows you to specify the billable hours you can achieve on an average day, and then by dividing this figure into your overhead, RateMate can figure out your business' hourly "burn rate" -- in other words, the amount you absolutely cannot charge less than unless you want to be paying your customer to work for them.
3) Your Desired Profits. RateMate allows you to enter your desired profits one of two ways: as a straight dollar figure (as in the amount you wish to earn daily, weekly, monthly or annually) -- or as a percentage of #1, your overhead. You can also specify your approximate annual tax rate and RateMate will take this into account, ensuring you earn your desired profits after taxes.
An intuitive interface and clear summary page round out the package, explaining in detail how your hourly rate was calculated.
Don't neglect this most important part of running any business! Guarantee your profitability with RateMate today.
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