Your hourly rate must cover your target net income, tax, fixed costs and non-billable hours. The formula below is a practical starting point — not a substitute for tax advice.
Formula
Target net income + tax + fixed costs + holiday = revenue goal. Divide that by your billable hours per year.
Example
Aiming for €40,000 net, assuming ~30% tax, €5,000 fixed costs and 1,400 billable hours? That gives a minimum of roughly €73 per hour (excl. VAT).
Don't forget
Include pension, disability insurance (AOV), sick leave, sales and admin time (10–20% of your hours). Quote your rate excl. VAT (BTW); VAT is added separately on the invoice.
Market check
Compare your rate with peers via LinkedIn, industry bodies and platforms — and adjust for experience, niche and client type.