Question 1

What counts as overhead for a freelancer?

Accepted Answer

Overhead is the non-billable cost of running your business, such as software, insurance, and coworking space, plus the time you spend on non-billable admin work each week.

Question 2

How is the overhead cost per billable hour calculated?

Accepted Answer

The calculator takes your monthly overhead cost and your billable versus non-billable admin hours per week to spread that overhead cost across each billable hour.

Question 3

Why does non-billable admin time matter for my rate?

Accepted Answer

Non-billable time and tools cost money too, so the calculator shows what to add to your current billable rate to fully cover both your overhead and your admin hours.

Question 4

What is my ‘fully loaded’ rate?

Accepted Answer

It is your current billable rate plus the rate needed to break even on overhead, giving you the rate that actually accounts for your non-billable time and costs.

Overhead Rate Calculator

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