Accountants Day Rate (Daily) Calculator
Estimate the daily rate an accountant may need to charge to cover salary, business costs, billable days and a target profit margin.
Overview
Use this accountants day rate calculator to estimate a daily charge-out rate from your target salary, employment costs, annual overheads, expected billable days and desired profit margin. It is useful for sole practitioners, contractors and accountancy firms reviewing their pricing.
How it works
The calculator first adds your target salary, employer costs and annual overheads to find the annual cost base. It then increases the required revenue so that the chosen percentage remains as profit. Finally, it divides that annual revenue target by your expected billable days. Fewer billable days or higher costs increase the daily rate needed.
How to use this calculator
- 1Enter the annual salary you want the business to support.
- 2Add employer costs as a percentage of salary.
- 3Enter all expected annual business overheads.
- 4Estimate the number of days you can invoice clients each year.
- 5Choose a target profit margin and review the suggested daily rate.
Example Calculation
Target annual salary
$60,000
Employer costs
15%
Annual business overheads
$12,000
Billable days per year
210
Target profit margin
20%
Recommended daily rate
$482
With a $60,000 salary target, 15% employer costs, $12,000 of overheads, 210 billable days and a 20% profit margin, the estimated daily rate is about $482 per day.
Frequently asked questions
How do I calculate my accountant day rate?
Add your salary, employment costs and annual overheads, allow for your desired profit, then divide the revenue required by your realistic number of billable days.
How many billable days should an accountant use?
This depends on leave, public holidays, training, business development, administration and client demand. Many independent professionals use fewer than the total working days in a year.
Should I include employer costs in my day rate?
Yes. If you employ staff or pay yourself through a business, costs such as payroll taxes, pension contributions and benefits can affect the revenue needed.
Does the daily rate include tax?
The calculation does not add sales tax, VAT, corporation tax or personal income tax. Consider how applicable taxes should be shown or charged in your pricing.
What profit margin should an accountancy practice target?
A suitable margin varies with the firm's risk, growth plans, service mix and market. Use a margin that helps cover uncertainty, reinvestment and the returns you need from the business.
Why is my calculated day rate higher than my salary divided by working days?
A salary alone does not cover non-billable time, overheads, employment costs or profit. The calculator includes these factors, which usually raises the required client rate.
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Assumptions and warnings
Assumptions
- The calculation treats the target annual salary as a business cost.
- Employer costs are estimated as a percentage of salary.
- Annual overheads remain fixed regardless of revenue.
- Billable days reflect only days that can realistically be invoiced to clients.
- The profit margin is calculated before corporation tax, personal tax, financing costs and any unentered expenses.
- Results are estimates and depend on actual utilisation, pricing and costs.
Warnings
- This calculator provides a business-planning estimate only and is not financial, tax or accounting advice.
- Check your expected billable days, tax obligations, insurance requirements and costs before setting client fees.