Freelance Hourly Rate Calculator
Price your time so that you earn what you want, not just what you bill.
Your numbers
Your results
Freelance Hourly Rate Calculator by TheCalcTools
How the Freelance Hourly Rate Calculator works
Enter the income you want to keep after tax, plus your yearly business costs.
The calculator grosses up the income for tax and adds expenses.
It then divides by the hours you can realistically bill after holidays.
The formula
Worked example
Using the default values shown in the calculator:
| Desired yearly take-home income | $60000 |
|---|---|
| Business expenses per year | $6000 |
| Tax and savings reserve | 25 % |
| Billable hours per week | 25 |
| Weeks off per year | 5 |
- Gross revenue = $60,000 ÷ 0.75 + $6,000 = $86,000.
- Billable hours = 25 × 47 = 1,175.
- Rate = $73.19 per hour.
Result:
| Hourly rate needed | $73.19 |
|---|---|
| Gross revenue needed | $86,000 |
| Billable hours per year | 1,175 |
| Day rate (8 hours) | $586 |
Frequently asked questions
Why only 25 billable hours a week?
Admin, marketing, sales calls and learning are unpaid. Many freelancers bill 50–70% of their working hours.
Should I charge more than the result?
The figure is a minimum. Add a buffer for slow months, equipment and late-paying clients.
Sources and further reading
Related calculators
More in Business & Marketing · All calculators
This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.