Price the session from all the time it takes, including prep and parent notes. ProfitDrawer's tutoring guide works a 1-hour in-home session as 1.5 hours of work at $30 an hour ($45), plus $2 of materials, $7 of driving and $4 of overhead, for $58. Adding 20% for taxes and cancellations gives $69.60, rounded to $70 per session. These are example numbers, not local market rates.
Online sessions cost less to deliver. With no driving, the same example is $45 + $2 + $4 = $51, and $51 x 1.20 = $61.20, so the guide suggests a price of $62 or $65.
Other points from the guide:
- Many tutors charge per session or per hour and sell packages of sessions paid up front.
- Test prep and advanced subjects often charge more than homework help.
- Driving in the example is 10 miles round trip at a rough running cost of $0.70 a mile.
- Write a clear late cancellation policy, since cancelled sessions are part of why the margin is there.
To set your own rate, put your real prep time, travel and monthly costs into the free price per job calculator, then compare the result with local tutoring rates so your price is in a sensible range.
Source: How to Start a Tutoring Business (Step by Step for Beginners) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.