Agency Hourly Rate Calculator
Set a billable hourly rate from monthly costs, billable capacity, and your target margin.
Your numbers
Example values are prefilled. Use the same reporting period for all inputs.
Billable hours per month
480
Required monthly revenue
₹4,00,000.00
Required billable hourly rate
₹833.33
The formula
Billable hours = Available hours × Utilization / 100; Required revenue = Costs / (1 − Target margin / 100); Hourly rate = Required revenue / Billable hours.
Worked example
₹3,00,000 monthly costs, 800 hours at 60% utilization, and a 25% margin require ₹4,00,000 revenue across 480 billable hours: ₹833.33 per hour.
Frequently asked
Is margin the same as markup?
No. Margin is profit divided by revenue. A 25% target margin means dividing cost by 0.75, not adding 25% to cost. Include expected non-billable work in utilization.