Freelance Hourly Rate Calculator
Work out the hourly rate you need to charge to reach your target income.
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How to do it
- 1Fill in the boxes
Type your numbers or pick the options you need.
- 2See the result
The answer updates right away as you change a value.
- 3Use it
Copy the result or note it down. Nothing is sent anywhere.
About this tool
Enter the take-home income you want, your yearly business expenses, billable hours per week, weeks off and your tax rate. The tool shows the revenue you need and the hourly rate to charge.
Why billable hours are lower
Freelancers spend time on admin, marketing and unpaid work, so billable hours are often 20 to 25 a week, not 40. Holidays and sickness reduce the weeks you can work too.
Example
To take home $60,000 with $6,000 of costs and 25% tax, you need about $88,000 in revenue. Over 25 billable hours for 46 weeks, that is about $77 an hour.
Tips
Round up and keep a buffer for slow months. Compare with market rates for your skill. Charge for projects when you can, so faster work earns more.
Frequently asked questions
Why is my rate higher than a salary equivalent?
Because you cover tax, costs, unpaid time and leave that an employer would normally pay.
What are billable hours?
The hours you can actually charge to clients, not the total you work.
Should I include software and equipment?
Yes, put all yearly business costs in expenses.
How much tax should I assume?
Use your expected effective rate, often 20 to 30 percent including social contributions.