Compute the fully-loaded hourly cost of a developer.
Salary plus bonus becomes total compensation, which overhead then inflates to a loaded cost, and dividing by billable hours gives the hourly rate. The true price of a developer is far above their salary, and this loaded rate is what pricing, contracts and capacity plans should use.
Developer Hourly Rate
Hourly rate = salary x (1 + bonus) x (1 + overhead) / billable hours
Hourly rate = salary x (1 + bonus) x (1 + overhead) / billable hours Salary plus bonus becomes total compensation, which overhead then inflates to a loaded cost, and dividing by billable hours gives the hourly rate.
The true price of a developer is far above their salary, and this loaded rate is what pricing, contracts and capacity plans should use.
This calculator takes 4 inputs: Annual salary, Bonus, Overhead, Billable hours/year. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.