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//// Business · Freelance Growth

Raise Rates or Hire Calculator

The decision most contractors get wrong: raise rates or hire a sub? Compare revenue per hour of your time for both paths — with sub margin analysis, capacity utilization, and a recommendation based on your actual numbers.

Corp Tax Rate21%
SE Threshold$400
FICA Cap 2024$168,600

Current State

Capacity utilization80%

Option A — Raise Rates

Option B — Hire / Subcontract

Recommendation: Hybrid Approach

You're close to capacity (80%). Consider a hybrid: raise rates on new clients while testing subcontracting on lower-value work. Both paths improve your revenue per hour of personal time.

Current Revenue/Hr
$150.00/hr
80 hrs/mo
Option A Revenue/Hr
$180.00/hr
After rate raise
Option B Revenue/Hr
$168.10/hr
Net / your hours
Sub Margin
50%
On delegated work
Current
$12,000/mo
Your hours80 hrs
Revenue / your hour$150.00/hr
Margin100%
Option A — RaiseBetter
$10,800/mo
Your hours60 hrs
Revenue / your hour$180.00/hr
Margin100%
Option B — Hire
$9,750/mo
Your hours58 hrs
Revenue / your hour$168.10/hr
Sub cost$2,250
Margin81%

Break-even sub rate: at $40.00/hr for the sub, Option B net revenue equals Option A revenue. Your sub rate is above break-even — raising rates currently wins.