Accountants Hourly Rate Calculator Examples
Worked examples showing how income goals, overheads, profit margin and billable time affect an accountant's estimated hourly and daily rates.
These worked examples use the same rate-setting method with different business models and billable capacity. They illustrate how small changes to overheads, margins or available chargeable time can materially change a required rate.
Independent accountant with a balanced workload
A freelance accountant expects to invoice for 210 days, averaging 7.5 billable hours each day.
Input Summary
Target annual income
£75,000
Annual overheads
£15,000
Desired profit margin
20%
Billable capacity
210 days at 7.5 hours per day
Calculation Breakdown
- 1Income and cost requirement£75,000 + £15,000£90,000
- 2Required annual revenue£90,000 ÷ 0.80£112,500
- 3Daily rate£112,500 ÷ 210£535.71
- 4Hourly rate£535.71 ÷ 7.5£71.43
Result Summary
Hourly rate
£71.43
Accountants Hourly Rate Calculator
The estimated rate is £71.43 per hour or about £536 per day.
New practice with fewer billable days
The owner targets £50,000 of annual income, has £10,000 in overheads and expects 160 billable days at 6 hours per day.
Input Summary
Target annual income
£50,000
Annual overheads
£10,000
Desired profit margin
15%
Billable capacity
160 days at 6 hours per day
Calculation Breakdown
- 1Income and cost requirement£50,000 + £10,000£60,000
- 2Required annual revenue£60,000 ÷ 0.85£70,588.24
- 3Daily rate£70,588.24 ÷ 160£441.18
- 4Hourly rate£441.18 ÷ 6£73.53
Result Summary
Hourly rate
£73.53
Accountants Hourly Rate Calculator
The estimated rate is £73.53 per hour or about £441 per day.
Established specialist practice with higher costs
The practice targets £120,000 annual income, incurs £40,000 overheads and expects 220 billable days at 7 hours per day.
Input Summary
Target annual income
£120,000
Annual overheads
£40,000
Desired profit margin
25%
Billable capacity
220 days at 7 hours per day
Calculation Breakdown
- 1Income and cost requirement£120,000 + £40,000£160,000
- 2Required annual revenue£160,000 ÷ 0.75£213,333.33
- 3Daily rate£213,333.33 ÷ 220£969.70
- 4Hourly rate£969.70 ÷ 7£138.53
Result Summary
Hourly rate
£138.53
Accountants Hourly Rate Calculator
The estimated rate is £138.53 per hour or about £970 per day.
Part-time accountant with concentrated client work
The accountant targets £36,000 annual income, has £6,000 overheads and expects 120 billable days at 5 hours per day.
Input Summary
Target annual income
£36,000
Annual overheads
£6,000
Desired profit margin
10%
Billable capacity
120 days at 5 hours per day
Calculation Breakdown
- 1Income and cost requirement£36,000 + £6,000£42,000
- 2Required annual revenue£42,000 ÷ 0.90£46,666.67
- 3Daily rate£46,666.67 ÷ 120£388.89
- 4Hourly rate£388.89 ÷ 5£77.78
Result Summary
Hourly rate
£77.78
Accountants Hourly Rate Calculator
The estimated rate is £77.78 per hour or about £389 per day.
How to Read Your Results
Treat the hourly and daily figures as estimated minimum charge-out rates under the inputs used.
Required annual revenue is the sales target implied by the income, overhead and profit assumptions.
Annual billable hours are not total hours worked; they are only the hours expected to be invoiced to clients.
If you use a fixed-fee model, compare expected fee revenue and delivery time against the equivalent hourly rate.
Review the result when expected costs, capacity, collection rates or business objectives change.
Assumptions & Important Notes
- Each example assumes all invoices are paid and the stated billable capacity is achieved.
- Examples exclude VAT, sales taxes, personal taxes and any costs not included in overheads.
- The selected profit margin is treated as a percentage of annual revenue.
- Rates are examples for educational illustration, not market-rate recommendations.
Related Examples
Frequently Asked Questions
Can a lower daily rate still produce a higher hourly rate?
Yes. A lower daily rate can translate into a higher hourly rate when fewer billable hours are expected in the day.
Why does the new-practice example need a similar hourly rate to the established example?
The new practice has fewer billable days and hours, so its revenue target is divided across less chargeable time.
Can I use these examples for fixed-fee accounting work?
They can provide a time-based benchmark. Estimate delivery hours for a fixed-fee service and compare the expected fee with the required hourly rate.
What if I cannot bill the number of days assumed?
Recalculate with a lower number of billable days. The required daily and hourly rates will increase if the revenue target is unchanged.
Ready to calculate your own result?
Use the live calculator with your own inputs, timing, and preferences.