How to use these calculators
For an agency or solo consultant, the cost of doing business is often underestimated because owners assume every weekday is billable. Model realistic time for sales, leave and administration, then add direct client delivery costs and profit goals. The overhead result is a minimum cost allocation, not the price to quote.
A worked scenario
Overhead recovery: $600 per billable day or $100 per billable hour.
These are costs before direct project expense, taxes and profit margin—not a final quote.
How to plan this decision
- Measure true yearly overhead
Include annualized office, software, insurance, administration and other non-project expenses.
- Estimate achievable billable time
Subtract holidays, internal work, sales time and unbilled capacity from your calendar.
- Add margin and delivery costs
Set a price only after allocating project-specific costs, risk and a desired profit margin.
Read the detailed worked guide →
Start with the formula
Turn income goals, business expenses, billable capacity, leave, tax, and risk into a sustainable pricing floor.
Read How to Set a Freelance Rate That Covers Real Working Time →