I run a tutoring business in metro Atlanta, and I wanted to throw my two cents in about what tutors may consider when calculating their rates.
I graduated from Georgia Tech in 3 years with a degree in Applied Mathematics and a minor in Economics. I have been tutoring for 6 years, 3.5 of which have been for my own business.
I currently only work with students one-on-one to give them personal attention. This is in contrast to tutoring centers which will put several students from different subjects and age groups at the same table and have the tutor split her time. This does allow tutoring centers to charge less.
All of my students come to me at a local bookstore, which allows me to work with many more kids who need help. Thankfully, the store provides me with a dedicated area in which I have whiteboards, printer, etc. Maintaining this space is an input cost for me.
I primarily teach Calculus and Physics, but I'm also available for Essay Writing, SAT, ACT, Spanish, Economics, Government, and College Prep tutoring. Because I cover so many subjects, as well as the upper level ones, most parents find they only need one tutor for their children. I find that most parents see a greater value in a tutoring session if the tutor can switch gears to answer questions for another class.
As far as rates go, I charge two different rates. One is if you find me directly or by referral, and that's $60/hr. On a website I use to advertise myself (WyzAnt) and that allows you to use credit cards for payment, I charge $80/hr. The difference covers the fact that the website takes a percentage. So, keep that in mind if you hire someone via a tutoring website. On the other hand, WyzAnt (and sites like it) tend to provide you with a lot more information about tutors and their abilities up front, so it's not as much of a risk.
The other thing to keep in mind is whether or not somebody tutors for a living. If they do, they have to report self-employment income for tax purposes. For me personally, I give the government 25-30% of my income each year, which is one of the reasons I have to charge my clients more. I also do not get benefits, as I am self-employed, so I get to pay for my own health insurance. This is all in addition to the fact that tutoring is seasonal, and there's a marked drop off in income during summer months and other holidays.
Then there is, of course, the question of quality. Finding someone with experience in tutoring is a must. There is a skill required to impart knowledge to someone else that is not necessarily inherent in all people who understand the subject. I personally like math, but I also like to talk... apparently it's rare to like both!
Hopefully this information helps understand the costs of tutoring. Let me know if you have any questions, and I'll be happy to answer them for you!
