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CategoryExample valueDescription
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Total monthly operating costs of the agency30000Total monthly operating costs of the agency (e.g. rent, software, utilities, etc.)
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Total capacity of all employees (in hours per month)1600Total number of productive hours by all employees during the month
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Average gross monthly salary of an employee (including bonuses)2000Average gross monthly salary of an employee (including bonuses)
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Monthly capacity of a specific employee160Monthly capacity of a specific employee (e.g. 160h for full-time, less for part-time)
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 Internal Hourly Rate Calculation (formula logic)Fromula explanationCalculated Internal Hourly Rate (excel formula)
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(Average gross monthly salary of an employee + (Total monthly operating costs of the agency * (monthly Capacity of employee /Total monthly Capacity of agency))) /monthly Capacity of a specific employeeThe employee’s gross salary is increased by a proportional share of total operating costs (based on their share of company-wide capacity), and the result is divided by their monthly working hours.31.25
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Minimum Client Hourly Rate Calculation
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CategoryExample value
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Employee’s internal hourly rate (€)31.25Calculated Internal Hourly Rate
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Billable ratio (Utilization in %)60manual input based on data from Allfred
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Desired minimum profit margin (%)20manual input
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Minimum hourly rate for the client (€)62.5
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Formula logicFormula Explanation
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(Employee’s internal hourly rate *(1+Desired minimum profit margin in %/100))/(Billable ratio/100)The formula calculates the hourly rate you should charge the client in order to cover the employee’s cost and generate the desired profit margin, considering their ability to generate billable hours (utilization).
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