Made for Independent Contractors
Set Your Minimum Profitable Rate
Also useful for: people in Entrepreneurship
50 min
Advanced
Budgeting
Earn More
Turn annual costs, available work time, and a profit target into a clear minimum rate for quotes and client conversations.
Create a free account to save your progress and use this Playbook.
Use this when
Your current rate is based on guesswork, your schedule stays busy but cash feels tight, or you need a firm floor before pricing new work.
You'll need
- Currency
- Target annual pay
- Annual business overhead
- Annual tax reserve
- Working weeks
- Hours per week
- Nonbillable time percentage
- Target profit margin
- Billable hours in a day
- Rate format
- Rounding increment
- Sample job details
You'll get
- Annual cost base calculated
- Required annual revenue calculated from the target margin
- Realistic yearly billable hours calculated
- Hourly and daily rate floors rounded up
- Sensitivity checks completed
- Sample job checked against the rate floor
By the end of this playbook
You will have:
- Annual cost base calculated
- Required annual revenue calculated from the target margin
- Realistic yearly billable hours calculated
- Hourly and daily rate floors rounded up
- Sensitivity checks completed
- Sample job checked against the rate floor
Sample
This is sample data, not your prompt. Pro unlocks this higher-stakes Playbook. On Free Playbooks you can still copy the assembled prompt into any AI.
Sample input
Currency: USD Target annual pay: $90,000 Annual overhead: $24,000 Annual tax reserve: $18,000 Working weeks: 46 Hours per week: 40 Nonbillable time: 35 percent Target profit margin: 15 percent Billable day: 7 hours Rate format: Both Rounding increment: $5 Sample job: 24 delivery hours, 3 travel hours, 4 revision hours, and $600 in direct materials.
Sample assembled prompt
Annual cost base: $132,000 Required annual...