Accountants Break-Even Rate (Daily) Calculator Examples
Worked examples show how annual costs, billable days and profit targets affect an accountant's required daily rate.
These examples illustrate cost recovery and pricing calculations for different accountant and accountancy-practice scenarios. All figures are illustrative and are intended for planning estimates rather than final pricing decisions.
Sole practitioner with 180 billable days
A sole practitioner plans for 180 billable days after allowing for leave, administration, client development and training.
Input Summary
Annual overheads
$30,000
Annual salary and owner cost
$70,000
Other annual costs
$10,000
Billable days
180
Target annual profit
$20,000
Billable hours per day
7.5
Calculation Breakdown
- 1Total annual costs$30,000 + $70,000 + $10,000$110,000
- 2Break-even daily rate$110,000 / 180$611.11 per day
- 3Required annual revenue$110,000 + $20,000$130,000
- 4Target daily rate$130,000 / 180$722.22 per day
- 5Equivalent hourly rate$722.22 / 7.5$96.30 per hour
Result Summary
Total annual costs
$110,000
Accountants Break-Even Rate (Daily) Calculator
The business needs about $611.11 per billable day to cover costs, or $722.22 per day to include the stated profit target.
New freelance accountant with lower costs
A new freelancer allows for substantial marketing and administration time, resulting in 140 expected billable days.
Input Summary
Annual overheads
$12,000
Annual salary and owner cost
$45,000
Other annual costs
$3,000
Billable days
140
Target annual profit
$12,000
Billable hours per day
6 hours
Calculation Breakdown
- 1Total annual costs$12,000 + $45,000 + $3,000$60,000
- 2Break-even daily rate$60,000 / 140$428.57 per day
- 3Required annual revenue$60,000 + $12,000$72,000
- 4Target daily rate$72,000 / 140$514.29 per day
- 5Equivalent hourly rate$514.29 / 6$85.71 per hour
Result Summary
Total annual costs
$60,000
Accountants Break-Even Rate (Daily) Calculator
The estimated target is $514.29 per billable day, equivalent to $85.71 per billable hour.
Small practice with higher capacity
The practice estimates 220 billable days for a lead accountant and wants a larger profit contribution from that role.
Input Summary
Annual overheads
$55,000
Annual salary and owner cost
$90,000
Other annual costs
$15,000
Billable days
220
Target annual profit
$35,000
Billable hours per day
7 hours
Calculation Breakdown
- 1Total annual costs$55,000 + $90,000 + $15,000$160,000
- 2Break-even daily rate$160,000 / 220$727.27 per day
- 3Required annual revenue$160,000 + $35,000$195,000
- 4Target daily rate$195,000 / 220$886.36 per day
- 5Equivalent hourly rate$886.36 / 7$126.62 per hour
Result Summary
Total annual costs
$160,000
Accountants Break-Even Rate (Daily) Calculator
The practice's target daily rate is $886.36, compared with a cost-only break-even rate of $727.27.
How to Read Your Results
The break-even daily rate covers entered annual costs but does not include the selected profit target.
The target daily rate is the average revenue needed per billable day to cover costs and achieve the profit target.
The hourly figure is a comparison tool based only on average billable hours, not all hours worked.
Compare results with your expected mix of fixed-fee work, day-rate work and time-based billing.
Review estimates when annual costs, available capacity or your profit target changes.
Assumptions & Important Notes
- Examples use a generic dollar currency only for illustration; the same arithmetic works in any currency.
- Each scenario assumes annual revenue is earned evenly across its expected billable days.
- The billable-day figures already exclude non-chargeable activity.
- Tax and VAT treatment is not separately modelled.
Related Examples
Frequently Asked Questions
Can I use these examples for a fixed-fee accounting service?
Yes. Convert the required daily or hourly revenue into an expected delivery cost for the assignment, then consider the scope and uncertainty involved.
Why does the hourly equivalent differ between examples?
It depends on both the target day rate and the number of billable hours assumed within each day.
What happens if I bill fewer days than planned?
The annual revenue target stays broadly the same, so the revenue required from each remaining billable day increases.
Are the example day rates recommended market prices?
No. They are cost-and-capacity planning estimates, not market benchmarks or final client-price recommendations.
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