Profit per Hour Calculator
Calculate your true profit per hour worked.
Enter revenue, costs, and hours to see your effective hourly rate and whether you're meeting your income goals.
Profit per Hour
Profit per Hour tells you what you actually earn for each hour of work after all costs are subtracted.
Profit per Hour = (Revenue - Total Costs) / Hours Worked
Effective Annual Rate = Profit per Hour × Weekly Hours × 52
This is more useful than gross revenue because it accounts for:
- Materials and supplies
- Overhead costs (rent, utilities, software)
- Subcontractor or employee costs
Benchmarks:
- Freelancers often target $50–150/hr effective rate
- Service businesses aim for $75–200/hr after costs
- If your effective rate is below minimum wage, it’s time to raise prices or cut costs