What should your agency charge per hour?
Start from the profit you want, not from what competitors charge. Get your minimum hourly rate, day rate and retainer prices.
The math, explained
We add your team costs, overhead and target profit to get the revenue you need each year.
Billable hours = people × working weeks × 40 hours × utilization. Nobody bills 100% of their time: sales, admin and meetings take the rest.
Your hourly rate is required revenue ÷ billable hours. Retainers are shown at that rate for common monthly hour blocks.
Run the whole thing in one place
Sell productized plans with checkout, take requests through a branded portal, track time and get paid automatically.
Good questions
What's a realistic billable utilization?
For most agencies, 60–75%. Owners and managers are usually well below that because they sell and manage.
Should I charge hourly at all?
You don't have to show an hourly rate to clients. But knowing it helps you price retainers, projects and productized plans that are actually profitable.
How often should I review my rates?
At least once a year, and whenever your team or costs change.