Freelance Hourly Rate Calculator
Stop guessing your rate. Enter the income you want, your business costs, and how many hours you can actually bill — we'll back into the hourly rate you need to charge.
Example: with Target annual income $70,000 · Annual business expenses $6,000 · Billable hours per week 25 hrs · Working weeks per year 48 wks → Hourly rate to charge: $63.33.
- Day rate (8 hrs)$507
- Billable hours / year1,200 hrs
Computed by the calculator below using its default values. Change any input to see your own numbers.
Annual target
Why your rate feels high
Freelancers rarely bill 40 hours a week — admin, sales, and downtime eat into it. If you can bill 25 hours over 48 weeks, that's 1,200 billable hours to cover a full year of income and expenses. That's why a sustainable freelance rate is far higher than the equivalent salary's hourly wage.
How it’s calculated
Billable hours = hours/week × weeks. Rate = (target income + expenses) × (1 + buffer) ÷ billable hours.
Results update as you type and are estimates, not professional advice — verify important decisions with a qualified professional.
Common mistakes
- Assuming you can bill 40 hours a week.
- Leaving out a buffer for taxes and slow months.
Frequently asked questions
How many hours can I really bill?
Most full-time freelancers bill 20–30 hours a week once admin and business development are subtracted.
Should I add a profit buffer?
Yes — a 10–20% buffer covers taxes set-asides, slow months, and reinvestment.
Are taxes included?
Treat the target income as take-home you need, and use the profit buffer plus our self-employment tax calculator to plan for taxes.