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30X40 Design Workshop's - Hourly Rate Worksheet

NOTE: This is included (along with dozens of other assets) in the Architect + Entrepreneur StartUp Toolkit v2.0  (brand new, Nov. 2019)

Calculating your hourly design fee / rate isn't difficult, but it's not something they teach you how to do in design school. This spreadsheet provides you with two tabs (and methods) to determine one that makes the most sense for your business. The simplified version is for freelancers just getting started, the detailed calculation is designed for young professionals and those who want more control over the financial health of their business.

What you'll get:

  • Break Even Analysis Spreadsheet (.xls)
    • Tab 1: simplified rate setting calculation (for freelancers)
  • Tab 2: detailed rate setting worksheet with notes and formulas
  • Reference: Financial terms defined + formulas + guidelines (2 pg PDF)

What's you'll need to provide:

  • Enter your target annual salary
  • Enter Your Utilization Rate(s) for all Employees (guide included)
  • Enter Office / Overhead Expenses (guidelines included)
  • Enter Your Desired Profit Margin

From there, the worksheet will calculate the: Break Even Cost, Overhead Rate, Net Operating Revenue, Net Multiplier and generate suggested minimum billing rates that include your desired profit margin.

You'll understand how each contributes to a sensible hourly billing rate designed to support you and your business. So, rather than choosing a billing rate randomly (like I did by asking friends) or by guessing, you'll have the confidence to speak about your financials with your clients and the ability to track your profits throughout the fiscal year.

Follow along with the video tutorial here to see the spreadsheet explained in detail.

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30X40 Design Workshop's - Hourly Rate Worksheet

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