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Primary formula: netHourlyRate = netFee รท totalHours
Duc Nguyen X.By Duc Nguyen X.ยท Founder, Wage101Last reviewed: View update historyMethodology

Educational only: Work and pay decision support, not tax, legal, financial or career advice.

Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral work and pay planning using your own assumptions.

What this calculator helps you decide

Best for

Checking a fixed project fee after direct costs and all project time.

Outputs

Gross and net hourly rates, total hours, target capacity and hour margin.

Start here

Enter the fee, delivery and non-delivery time, direct costs and target rate.

Close-intent boundary
Do not use this to compare employee and contractor packages; use Contractor Rate Equivalent Calculator.

Understand real hourly value

Project Fee to Hourly Rate: gross and net hourly rates

Gross and net hourly rates, total hours, target capacity and hour margin.

Project fee and full-time assumptions

Include delivery and non-delivery hours on the same project basis.

Your numbers stay in this browser

currency units

Gross project fee before entered direct costs.

Hours spent delivering the project work.

Sales, administration and other project hours.

currency units

Direct project costs deducted from the fee.

Direct costs and target rateOpen the assumptions you are less likely to change on every comparison.
currency units

Your target net rate for the project.

Calculated result

Gross rate, net rate and target hour margin stay separate.

Use one currency consistently across all inputs.

PDF and CSV exports stay on this device. Clean page links contain no inputs.
Net hourly rate78.57per hour
Gross hourly rate85.71per hour
Total project hours140hours/project
Maximum hours at target146.67hours/project
Hour margin to target6.67hours/project

Scenario comparison

Each row names the assumption axis changed from the baseline.

ScenarioResultDifference
Entered scenario78.57Baseline
Delivery hours: 12675.34-3.23

Save these results, change an input, then compare the updated figures with this baseline.

The baseline is temporary in this tab and is not added to shared scenario links or generated reports.

Calculation details

View calculation detailsView the formulas and inputs used for these results.

Net hourly rate

Net hourly ratenetHourlyRate = netFee รท totalHours78.57 currency units
Result78.57 currency units

Project fee less direct costs, divided by all entered hours. Displayed using the engine-rounded value.

Net hourly rate formula โ†’

Gross hourly rate

Gross hourly rategrossHourlyRate = projectFee รท totalHours85.71 currency units
Result85.71 currency units

Gross project fee divided by all entered hours. Displayed using the engine-rounded value.

Gross hourly rate formula โ†’

Total project hours

Total hourstotalHours = deliveryHours + nonDeliveryHours140
Result140

Delivery plus non-delivery hours. Displayed using the engine-rounded value.

Total project hours formula โ†’

Maximum hours at target

Maximum hoursmaximumHoursAtTargetRate = netFee รท targetHourlyRate146.67
Result146.67

Net fee divided by the entered target hourly rate. Displayed using the engine-rounded value.

Maximum hours at target formula โ†’

Hour margin to target

Rate marginrateMargin = maximumHoursAtTargetRate โˆ’ totalHours6.67
Result6.67

Maximum hours at target less entered total hours. Displayed using the engine-rounded value.

Hour margin to target formula โ†’

Inputs used

Project fee
12,000.00 currency units
Delivery hours
120
Non-delivery hours
20
Direct costs
1,000.00 currency units
Target hourly rate
75.00 currency units
Open this calculator with preset values

This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.

Scenario values are visible in the URL, calculations run in the browser, and optional saved state stays only on this device. Anyone you share the URL with can read those numbers, so do not include private or identifying data.

Example: https://wage101.com/tools/project-fee-to-hourly-rate/?sv=1&deliveryHours=120&directCosts=1000&nonDeliveryHours=20&projectFee=12000&targetHourlyRate=75

ParameterMeaningUnitAllowed valuesPresenceDefault
projectFeeGross project fee before entered direct costs.currency units/project0 to 100000000Required12000
deliveryHoursHours spent delivering the project work.hours/project0 to 10000Required120
nonDeliveryHoursSales, administration and other project hours.hours/project0 to 10000Required20
directCostsDirect project costs deducted from the fee.currency units/project0 to 100000000Required1000
targetHourlyRateYour target net rate for the project.currency units/hour0.01 to 100000000Required75

Project Fee to Hourly Rate: gross and net hourly rates

Use net hourly rate only after counting non-delivery time and direct costs.

Formula summary

Primary formula
netHourlyRate = netFee รท totalHours

Read the full methodology

Data used here

  • The estimate uses your inputs and the work-value formula documented in the methodology.

Decision checks

Act on the result

Review scope, administration time and project-specific costs.

Stress-test the decision

Retest delivery hours and direct costs.

When this estimate can be misleading

  • No tax, payment risk, scope change, overhead allocation or market rate is inferred.
  • A positive target margin is not a profit guarantee.
  • Timing of cash collection is excluded.
  • Use net hourly rate only after counting non-delivery time and direct costs.

Educational estimate, not advice. See all assumptions & limitations โ†’

Use these practical guides to interpret the decision and its assumptions.

Frequently asked questions

What hourly rate does this project fee produce after all time and direct costs?

Review scope, administration time and project-specific costs.

Which official source and period does this use?

This market-neutral tool does not use an official local policy rule.

Can I share or save a scenario?

Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.

How should I use the calculated result?

Treat the calculated result as one scenario, then verify the input record with the greatest effect on that result.