# How to calculate your hourly rate

If you're interested in knowing how competitive your hourly rate is, now you have a way to figure that out.

In this article we'll talk about some simple ways to calculate your hourly rate, and talk about how to use that information if you want to compare it with other people or just make sure you're getting paid what your time is worth.

- You'll need to gather some materials
- Calculate how much you pay for your materials, and add it to your total expenses
- Add up the number of hours you work each week
- Add up the number of weeks you work per year
- Add up the number of years you've been working in this craft (or working full time at all)
- Multiply your total hours by your hourly rate to get your annual gross revenue
- If you're interested in knowing how competitive your hourly rate is, now you have a way to figure that out

## You'll need to gather some materials

Before we get into the mathematics of calculating your hourly rate, you need some numbers.

**Here's what you'll need:**

- Your annual gross revenue (how much money you make in a year)
- Your total expenses (what it costs to run your business)
- The number of hours per week that you work on average and the number of weeks per year

## Calculate how much you pay for your materials, and add it to your total expenses

Materials are the costs associated with the items you use in your product. This can include fabric, thread, beads and other supplies. It is important to note that these costs are not a part of your finished product's price—they're just what it takes to get there.

Materials also include things like shipping costs or import fees if you're selling internationally.

## Add up the number of hours you work each week

To calculate your hourly rate, you first need to add up the number of hours you work each week. If you do this on a regular basis, it's easy to keep track of how many hours per week you spend working on certain tasks.

However, if it has been awhile since you've done any kind of accounting for your time and energy, **start by writing down everything that takes up your time during an average day or week.** Keep track of this information over several weeks so that when you do the math to determine an hourly rate later on, it will be more accurate and meaningful.

Also keep in mind that if it's difficult for you to estimate exactly how long something took because there were distractions or interruptions during the process—maybe something came up with a client call or a meeting ran longer than expected—then just make sure those scenarios get included in this exercise as well!

It'll help put things into perspective when we come back around later on after calculating our numbers...

## Add up the number of weeks you work per year

To calculate your hourly rate, you will need to add up the number of weeks you work per year. In this article, we are going to use a 52-week year as an example because that is how many weeks there are in every year.

**Here is how to count up the number of weeks in a year:**

- Add up all the days in a year; for example, if there are 365 days in a given year then you will get 365 total days when adding them together.
- Divide this number by seven since there are seven days in each week and multiple it by 60 (to convert it into hours), which will give you 48640 hours per year or roughly 86000 minutes per year on average depending on how fast time flows at different speeds from day-to-day and place-to-place around Earth (i am not sure what kind of planet you live on so i cannot tell).

## Add up the number of years you've been working in this craft (or working full time at all)

Add up the number of years you've been working in this craft (or working full time at all).

For example, if you've been writing for 10 years, then you have a total of 10 years under your belt. **If you've been a writer for 5 years and an editor for 2 years, add 4 more to the tally: 4 + 2 = 6.**

## Multiply your total hours by your hourly rate to get your annual gross revenue

To calculate your annual gross revenue, multiply the total number of hours you work per year by your hourly rate.

For example, **if you work 40 hours per week for 50 weeks per year, your annual gross revenue is $200,000/2,000 = $100 per hour.**

## If you're interested in knowing how competitive your hourly rate is, now you have a way to figure that out

Now that you know how to calculate your hourly rate, it's time to use this information.

If you're interested in knowing how competitive your hourly rate is, now you have a way to figure that out. **You can compare your price with other freelancers or employees on similar jobs and see where you fall, and if necessary, adjust accordingly.**

We hope this article has helped you figure out your hourly rate, and maybe even given you some ideas on how to improve it. Remember that it's important to keep track of all of the hours you spend on your business, and make sure they're calculated accurately so that you don't lose money in any way.

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