Business & Freelance Calculator

Freelance Hourly Rate Calculator – What Should You Charge?

Most freelancers set rates by guessing or copying competitors. This calculator works backward from your actual income goal.

Freelance & Consultant Hourly Rate Calculator

Work out exactly what to charge per hour to hit your income goal — after expenses, taxes, and realistic billable hours.

Desired Annual Income (take-home target)

Annual Business Expenses (software, insurance, etc.)

Tax Rate estimated, %

Weeks Off Per Year vacation, sick, holidays

Working Hours Per Week

Billable Time % of hours actually billed

Please fill in income, working hours/week, and billable % (all greater than 0).

Hourly Rate to Charge

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Day Rate (8 hrs)

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Billable Hours / Year

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Total Revenue Needed

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Formula: Hourly Rate = (Desired Income ÷ (1 − Tax Rate) + Annual Expenses) ÷ Billable Hours per Year.
Billable hours account for the fact that most freelancers only bill 50-70% of their working hours —
the rest goes to admin, sales, and unpaid work.

How it works

Hourly Rate = (Desired Income ÷ (1 − Tax Rate) + Annual Expenses) ÷ Billable Hours per Year. Billable hours account for the fact that most freelancers only bill 50–70% of working hours — the rest is admin, sales, and unpaid work.

Example

$80,000 target income, $6,000 expenses, 25% tax, 4 weeks off, 40 hrs/week, 65% billable → roughly $69/hour, $552/day.

FAQ

Why is my calculated rate higher than I expected?

Because it accounts for taxes, unbilled admin time, and time off — most self-set rates ignore these and end up too low.

Should I always charge exactly this rate?

Treat it as your floor, not your ceiling — add a buffer for slow months and price up for specialized work.

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