forge
effective hourly rate calculator

Effective hourly rate calculator

Quoted a flat fee but not sure what it works out to per hour? Enter the fee and the hours it takes - this shows your real effective hourly rate and how it stacks up against the rate you're targeting.

what are you really earning per hour?
effective hourly rate$83/hr
vs your target rate-$17/hr
fee to hit your target$6,000
hours cap to hold the rate50 hrs
Within 20% of your $100/hr target. Trim hours or nudge the fee to close it.
what to do
  • Every extra 10 hours on this job pulls your effective rate down to $71/hr.
  • You're $17/hr under target - about $1,000 left on the table for this job.
$83/hr is under your $100 target - see which clients drag it down, live.
Forge builds branded time-tracking & client portals for your agency. No code, no hosting.
build my tools

Built with Forge - internal tools for agencies, live in minutes.

the method

How the rate is calculated

effective hourly rate = fee / hours

Simple - but it's the number most agencies never check. You quote a flat fee, the work runs long, and the real rate quietly drops. A $6,000 project that should take 50 hours is $120/hr; let it slip to 90 hours and you're down to $67/hr for the same money.

how to use it

Three inputs, instant rate

  1. Enter the fee or project price.
  2. Enter the hours it'll take to deliver.
  3. Enter the hourly rate you want to be earning.
  4. Read your effective rate, the gap to your target, and the fee or hours needed to hit it.
embed this calculator

Put this calculator on your site

Free to embed. Paste this snippet anywhere your audience plans pricing - it's self-contained, updates live, auto-fits any layout, and links back to the full tool.

<iframe src="https://forge.so/calculators/effective-hourly-rate-calculator/embed" title="Effective hourly rate calculator by Forge" width="100%" height="1090" style="border:0;width:100%;max-width:680px" loading="lazy" data-forge-calc></iframe>
<p style="font:14px/1.5 sans-serif;margin:8px 0 0">Free <a href="https://forge.so/calculators/effective-hourly-rate-calculator">effective hourly rate calculator</a> by Forge</p>
<script>(function(){window.addEventListener("message",function(e){if(!e.data||e.data.type!=="forge-resize")return;var f=document.querySelectorAll("iframe[data-forge-calc]");for(var i=0;i<f.length;i++){if(f[i].contentWindow===e.source)f[i].style.height=e.data.height+"px"}})})();</script>
keep reading

Related for agencies

Agency pricing & margin calculator

Go beyond the rate: see your real gross margin and profit on any retainer or project.

learn more →

Agency project quote calculator

Price a new project from the bottom up to land on the rate and margin you want.

learn more →

Blended rate

The blended team cost rate to compare your effective rate against - and how to set it.

learn more →

Value-based pricing

The fastest way to lift your effective rate: price on outcomes, not hours.

learn more →

Agency benchmarks

Sourced margin, utilization and rate benchmarks to check your rate against.

learn more →
questions

Frequently asked questions

What is effective hourly rate?

Your fee divided by the hours you put in - the real rate you earn, no matter how you quoted the job.

How do I calculate my effective hourly rate?

Divide the total fee by the hours delivered. A $5,000 project that takes 60 hours is an effective rate of about $83/hr.

Why is my effective rate lower than my quoted rate?

Scope creep and unbilled hours. The hours almost always grow; if the fee is fixed, every extra hour drags the effective rate down. Track hours per project to catch it early.

What's a good effective hourly rate for an agency?

Aim well above your blended cost rate. If your team costs $45/hr blended, an effective rate near or below that means you're losing money once overhead is added.

build. publish. prove.

Know what every hour really earns.

Forge builds branded time-tracking and client portals for your agency - no code, no servers, no setup.

build my tools more calculators