How to Calculate Your Hourly Rate as an Entrepreneur (Using Your Best Days)

As entrepreneurs, time is our most valuable asset. Knowing your hourly rate helps you price services, evaluate opportunities, and ensure you’re paid what you’re worth. But how do you figure it out when your income fluctuates? Here’s a simple, reliable method to calculate your hourly rate based on your highest-earning days without overinflating or undervaluing your worth.

Why Your Best Days Matter

Your peak earning days show what you can achieve under good conditions. Analyzing these days helps you set an hourly rate that matches your skills and market value. This method works whether you’re a freelancer, consultant, or side hustler.

Step-by-Step Guide to Find Your Hourly Rate

Follow these four steps to calculate a rate that’s both aspirational and grounded:

1. Identify Your Top 3–5 Earning Days

Think back to your highest-earning workdays over the past few months. These could be from client projects, gigs, or big sales. Write down:

How much you earned each day.
How many hours you worked to make that money (include direct work, not prep or downtime).

Example:

Day 1: $1,200 for 10 hours.
Day 2: $900 for 8 hours.
Day 3: $700 for 7 hours.
Day 4: $600 for 6 hours.

2. Calculate the Hourly Rate for Each Day

For each day, divide your earnings by the hours worked.

Day 1: $1,200 ÷ 10 = $120/hour.
Day 2: $900 ÷ 8 = $112.50/hour.
Day 3: $700 ÷ 7 ≈ $100/hour.
Day 4: $600 ÷ 6 = $100/hour.

3. Average the Rates

Add up the hourly rates and divide by the number of days to smooth out anomalies.

($120 + $112.50 + $100 + $100) ÷ 4 = $108.13/hour.

This average gives you a balanced estimate of your earning power.

4. Adjust for Realism

Reflect on your top days. Were they typical, or boosted by rare wins (e.g., a one-time bonus)? If they’re outliers, round down slightly to a rate you can confidently charge regularly. In the example, you might set your rate at $105 or $110/hour for simplicity and market alignment.

Example in Action

Let’s say you’re a graphic designer:

Top days: $800 (8 hours), $650 (7 hours), $500 (5 hours).
Hourly rates: $100, $92.86, $100.
Average: ($100 + $92.86 + $100) ÷ 3 ≈ $97.62.
Final rate: $95/hour (rounded for practicality).

This rate reflects your peak performance while staying achievable.

Tips

Focus on work-related earnings: Skip non-work income like refunds or gifts.
Include only billable hours: Don’t count unpaid prep or admin time—it lowers your rate inaccurately.
Check the market: Compare your rate to what others in your industry charge. (Pro tip: Browse job boards or ask your network for benchmarks.)
Revisit regularly: Recalculate every quarter or after major projects to stay current.
Test your rate: Quote it on a small project. If clients bite, you’re in the ballpark. If not, tweak it.

Next Step

Grab a notebook or spreadsheet. Jot down your top 3–5 earning days, crunch the numbers, and set your hourly rate. Share your results with our community. Let’s inspire each other to value our time and charge what we deserve.

P.S. What’s your hourly rate? Drop it in the comments or DM me to discuss how you calculated it!