How much should your digital agency be charging?

We've built this worksheet to help you navigate the cost of doing business and to help you come up with an hourly rate for your services.

Determining how much you should be charging for your services can be tough. With competitive pricing in digital marketing having no consistency, finding a solid baseline takes some more digging into your costs.

How to Use this Pricing Calculator

When breaking down the values for each of the fields below, enter your annual numbers, and try to be as accurate as possible. For costs that require budgets or estimates, make your best guess, but be conservative (meaning, always estimate your expenses on the high end) as to not find yourself in a place where you're taking a loss with your new pricing.

  • Office Expenses

    All costs associated with your location and equipment.
  • Production Expenses

    Costs associated with your work. Includes software costs, communication tools and more.
  • Salaries and Benefits

    This area includes all costs associated with employees and contractors.
  • Professional Fees

    Costs associated with organizational and support fees paid to external vendors.
  • Marketing, Travel and Other Variable Costs

    Budgeted expenses or variable costs that come up as you market and run your agency.
  • Always allocate a percentage of revenue for uncollected receivables
  • Annual Expense Breakdown

    Determining your total annual expenses and expenses per productive worker.
  • Determining Productive Working Time

    This section helps you determine how many productive working hours, per productive worker, you'll get in a year.
  • Enter a percentage (in decimal format) with your best guess as to the productivity of your workers. What percent of the day do they spend actively working on client projects?
  • Final Calculations

    A breakdown of your hourly costs, and determining your hourly pricing.

Agency Pricing Worksheet

READ THE STEP BY STEP ON UPCITY

This worksheet is intended to accompany my article posted on UpCity.com describing how to break down your digital agency's cost to better determine your hourly and overall pricing to run a stable, profitable company.

This worksheet was inspired from the business coaching I received from Alex Langshur, CEO of Cardinal Path as part of the Google Elevator program. Alex shared a detailed worksheet that he developed designed to help Agency owners/manager to understand the true cost of delivering their services, which was eye opening.

US Agency Average Hourly Rates

The average price a digital agency in the US charges per hour varies wildly. We've seen agencies in our markets charge as little as $20 per hour, and as much as $300 per hour. There are so many variables, such as size of company and experience/portfolio size, that skews the numbers heavily in one direction or another.

According to Credo.com, rates seem to average between $150 and $200 per hour, depending on the size of the firm.

source: Credo 2017 Digital Marketing Survey

Hourly Pricing by Agency Size

1 $153.75 $1,207.69
2-5 $185.49 $1,921.05
6-10 $184.64 $2,000.00
11-20 $160.83 $2,447.37
20+ $161.58 $2,541.67