Parents compare tutors by the hour, but you sell packages. Divide the package price by its hours to show the effective hourly rate behind every bundle.
A $720 package of 12 hours is $60 an hour — the number to put next to your drop-in rate.
The example
Three packages, each with a price and the hours it includes.
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Package | Price | Hours | $ / hour |
| 2 | Starter | $360 | 5 | $72.00 |
| 3 | Semester | $720 | 12 | $60.00 |
| 4 | Intensive | $1,200 | 24 | $50.00 |
The formula
One division reveals the hourly rate:
How it works
The effective rate is price spread over the hours:
B2is the total package price.C2is the number of tutoring hours it includes.- Dividing gives the effective hourly rate — the figure families use to compare you to an hourly tutor.
Show the per-hour rate dropping as packages get bigger; it makes the value of buying more hours obvious.
Try it: interactive demo
Enter the package price and the hours included.
Variations
Discount vs drop-in
Show the savings against your standard hourly rate.
Pitfalls & errors
A zero or blank hours cell returns #DIV/0!. Guard it: =IF(C2=0,"",B2/C2).
Count only billable tutoring hours, not prep or travel, or the effective rate looks lower than it really is.
Practice workbook
Frequently asked questions
Should prep time count as hours?
How do I show the discount?
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