Methodology and Assumptions
Our tools use arithmetic based on values you enter. Hourly rate divides an annual revenue target (owner income plus expenses) by estimated annual billable hours. Project and retainer pricing divide the estimated cost base by one minus the desired profit margin. Utilization is billable hours divided by hours worked. Profit is revenue minus the listed expenses and fees. Scope creep costs add extra time at your stated hourly value plus direct expenses. Results are estimates; rounding, omitted costs and actual market conditions can change outcomes. We do not import external financial data or provide jurisdiction-specific tax guidance.
Using these resources responsibly
Every estimate is only as reliable as its inputs. Review the assumptions and verify important calculations before making business decisions.