StitchTip calculator
Hourly rate calculator
Turn desired owner pay, business overhead, reserve and realistic billable hours into a sustainable handmade hourly rate.
How this tool works
The calculator adds pay and overhead, grosses that target up for the selected reserve, then divides only by hours that can actually be charged to products or clients.
Example calculation
$2,000 monthly pay plus $500 overhead and a 20% reserve require $3,125 revenue. Across 80 billable hours, the rate is $39.06 per hour.
Frequently asked questions
Why not use every working hour?
Sourcing, administration, photography and selling consume time but are not always directly billable. Using only productive hours prevents underpricing.
What belongs in the reserve?
Tax, paid leave, equipment replacement and contingency amounts not already included in overhead.