Employee billing rate with overhead and 25% margin
An employee earns $25 per hour, payroll burden is 18%, annual allocated overhead is $18,000, and the employee bills 30 hours per week for 48 weeks.
Enter these numbers in the calculator above
- Employee hourly wage
- $25
- Payroll burden
- 18 %
- Annual overhead allocated to employee
- $18,000
- Billable hours per week
- 30 hrs
- Working weeks per year
- 48 weeks
- Target margin
- 25 %
Recommended charge-out rate$56.00
The calculator first loads payroll cost, spreads annual overhead across billable capacity, then prices the resulting true hourly cost to the selected margin.