Calculating Your Hourly Rate – A Candidates Guide

by Jacqueline Klaus
28 April 2021
One of the most important answers when looking for flexible work is knowing your worth. You wouldn’t believe the number of people who do not know their value or how to determine their hourly rate. Make sure you prepare ahead of time for your interview for this question. Trust us when we say, it’s coming.

Calculating your hourly rate.

There are lots of ways to go about setting an hourly rate for your employer or contract work. Sometimes, it is quite straightforward in the sense that they might have a predetermined amount while other times it is imperative for you to be prepared with this answer. Even with a predetermined amount, there is always room for negotiation. Negotiation can be a scary word for some; be specific, ask for the top number and stay confident! 

Calculating your hourly rate isn’t as simple as you might think – simply taking the amount you’d like to make and dividing that by the amount of hours won’t turn out to be what you were expecting. 

When calculating your hourly rate, there are many costs to take into consideration: 

Taxes

Taxes vary depending on where you live and what your gross income is. There are a variety of factors based on your income bracket and which province you reside in. The Government of Canada has these clearly outlined on their website for your reference. 

Expenses

There are many factors that contribute to your expenses such as office supplies like phone, laptop, internet, professional memberships, software fees, legal and administrative fees, just to name a few. 

If you are running a freelance business, don’t forget to account for paid vacation, sick days and benefits. Salary is an expense – account for an amount you’d like to have left over to reinvest to grow your business.

Billable Hours

When calculating your hourly rate, it is important to factor in the amount of hours you will be working. If you are looking to acquire the same salary as a full-time position, make sure you account for that in your hourly rate.

How to Calculate Your Hourly Rate:

Let’s look at an example of determining your hourly rate based on the desired income of $25,000 from a part-time work (20 hours a week) perspective:

Salary: $25,000 +

Expenses and taxes: $10,000 (let’s keep it simple for this example) 

$35,000 / 

Hours: 20/ week  for 52 weeks = 1,040 

Hourly rate: $33.65 

In Conclusion

We are working to bring you opportunities that are NOT minimum wage jobs. Make sure you do your homework and ask for what you are worth. Research the market, find similar opportunities and understand the roles, responsibilities and pay scale. Flexible work should be equivalent to the traditional 9-5; despite the different work hours. 

As a candidate with The Working Mom Initiative if you have any additional questions in determining how to approach a negotiable hourly rate, please don’t hesitate to reach out – we are here for you! 

Taking a holistic approach to determining your hourly rate will ensure you aren’t disappointed!