Delegation
Effective hourly rate
Effective hourly rate is your income divided by all the hours you actually work, used to judge what your time is worth.
To find your effective hourly rate, take what you earn from the business in a period and divide it by every hour you worked, including admin, email and evenings. The result is often lower than owners expect.
The number helps with decisions. If you spend hours on a task that someone else could do at a lower hourly cost, you lose value. Handing it off frees time for work that earns more. It is a guide, not a rule, because some tasks matter for reasons beyond the math.
Try our hourly rate calculator to estimate your own figure. Then see delegation and your zone of genius for what to do next. Track your hours for two weeks to get a figure you can trust.
Related terms
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