Everhour separates cost and billable rates, while Philippine freelancers still need peso-based math for taxes, contributions, and billable hours.
Find the right rate based on your annual expenses, desired profit margin, and available billable hours. Stop guessing.
Rent, software, gear, salary
Time lost to admin, marketing, etc.
The calculator gives you the number — Everhour takes it from there.
One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
Set a budget, assign rates, and get alerted before you're over.
Measurement
Track your budget through time or costs
Every report you need — configured your way, always up to date.
Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
A Philippine hourly-rate calculation answers one practical question: what peso rate covers your income target, business overhead, statutory contributions, tax route, and realistic billable hours. The output belongs in Philippine pesos, the monetary unit issued by the Bangko Sentral ng Pilipinas, even when a foreign client thinks in dollars or another currency.
The calculation works for freelancers, consultants, virtual assistants, developers, designers, and self-employed professionals. It also helps you compare pricing formats. TESDA's gig-economy labor market report cites Payoneer's Philippines Freelance Market 2022 Report with common averages of $11-22 per hour, $27-33 per project, and $626-979 per monthly retainer.
Start with an annual take-home target, then add business overhead, self-funded contributions, and tax. Divide the resulting annual revenue requirement by billable hours, not by every working hour. Admin, proposals, revisions, collections, bookkeeping, training, and unpaid client calls reduce billable time even when they are necessary work.
Example: you want ₱824,000 in take-home pay, expect ₱200,000 in software, equipment, internet, payment fees, and workspace costs, and set aside ₱100,000 for SSS, PhilHealth, and Pag-IBIG. If your gross receipts are ₱1,200,000 and you elect the 8% income-tax option, tax applies to gross amounts over ₱250,000, so the tax is ₱76,000. Across 1,600 billable hours, the required rate is ₱750.00 per hour.
The largest local decision is the BIR tax route. Purely self-employed individuals or professionals with gross sales or receipts plus non-operating income not exceeding ₱3,000,000 may elect an 8% income tax on gross amounts over ₱250,000 in lieu of graduated income tax and percentage tax. That route changes the rate differently from graduated income tax.
Non-VAT taxpayers at or below the ₱3,000,000 gross annual sales or receipts threshold generally file percentage tax at 3%. VAT applies at 12% to taxable services when VAT registration is required or elected. Professional, talent, consultancy, and similar fees paid to individual resident payees also face creditable withholding tax at 5% or 10% based on the payee's current-year gross income threshold.
A one-off calculation is enough when you are setting a first quote, testing whether a retainer converts to a fair hourly equivalent, or checking if a foreign-currency offer still works after local taxes and contributions. Keep the estimate current when your client mix, billable hours, tax route, or contribution base changes.
A managed workflow becomes necessary once you bill several clients at different rates or switch between hourly, project, and retainer work. Track actual time, flag billable and non-billable work, and hand invoice-ready totals to the system that handles your Philippine tax wrapper. Everhour supports separate cost and billable rates, per-person defaults, per-project overrides, dated rate history, and project, member, or task pricing.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
High Performer
G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
Quote and calculate the base rate in Philippine pesos because local overhead, statutory contributions, and BIR tax amounts are peso-denominated. You can still show a foreign-currency equivalent for an overseas client, but the peso rate protects the calculation from exchange-rate drift and keeps the tax and contribution math tied to local obligations.
The 8% income-tax option versus graduated income tax changes the revenue target most for many self-employed professionals. The 8% option applies to gross amounts over ₱250,000 when the freelancer qualifies under the ₱3,000,000 threshold and elects it. Graduated income tax uses taxable income and reaches 35% in the top bracket for 2023 onward.
Creditable withholding tax reduces cash collected from the client invoice, but it is credited against income tax. Professional, talent, consultancy, and similar fees paid to individual resident payees are subject to 5% withholding if current-year gross income is at or below ₱3,000,000, and 10% if it is above that threshold.
Include self-funded SSS, PhilHealth, and Pag-IBIG amounts as part of the revenue requirement. For 2025, SSS contributions are 15% of monthly salary credit up to ₱35,000, PhilHealth direct-contributor premiums remain 5% with a ₱10,000 income floor and ₱100,000 ceiling, and Pag-IBIG self-employed savings are commonly capped at ₱400 per month.
The common mistake is dividing an income target by full-time working hours instead of realistic billable hours. A freelancer who works 2,080 paid-style hours in theory will bill fewer hours after proposals, revisions, bookkeeping, collections, and unpaid client communication. The rate must recover those non-billable hours through the hours clients actually pay for.
Everhour separates internal cost rates from client-facing billable rates, so you can compare labor cost, revenue, and profit. Members can have default rates, individual projects can override them, and rate changes can start on a chosen date so older reports keep their original calculations.
Everhour can price billable projects by project rate, member rate, or custom task rate. That setup fits Philippine freelancers and teams that mix hourly work, task-specific pricing, and client-specific arrangements while keeping billable amounts tied to the time entries behind each invoice.
Set rates from billable time, local costs, and dated pricing rules. Everhour keeps cost and billable rates connected to projects, people, and tasks for cleaner profitability tracking.
14-day free trial · No credit card · Cancel anytime
