Freelance hourly rate
Free freelance hourly rate calculator
Enter your target annual income, business expenses, tax buffer, weeks off and billable hours to estimate a sustainable freelance hourly rate.
Free, no sign-up, and the entered values stay in your browser.
How the calculation works
Enter your target annual income, business expenses, tax buffer, weeks off and billable hours to estimate a sustainable freelance hourly rate.
Required revenue = target income + annual expenses. Hourly rate = required revenue ÷ (1 − tax buffer) ÷ annual billable hours.This planning estimate is not a tax calculation. Review local taxes, benefits, unpaid administration, market pricing and project risk before quoting a client.
Convert annual needs into a sustainable billable rate
A freelance rate must cover pay, business expenses, taxes, time off and nonbillable work. Dividing salary by every working hour usually understates the required rate.
- Set an annual target
- Estimate realistic billable hours
- Add taxes and benefits
- Include nonbillable work
Set the annual income target
Start with the amount the owner needs before or after tax, then add business profit if it is separate from personal compensation.
Use billable hours, not available hours
Remove holidays, leave, administration, marketing, quoting and other time that cannot be charged directly to clients.
Add the full cost of self-employment
Include software, equipment, insurance, professional services, payment fees, taxes and benefit costs that an employer would otherwise carry.
Price the project as well as the hour
Use the rate as a cost floor, then consider scope, urgency, risk and value. State revision limits and extra-work rates in the agreement.
Freelance rate examples
Annual requirement
income + expenses + taxesInclude time-off funding.
Hourly floor
annual requirement ÷ billable hoursDo not divide by every work hour.
Project floor
estimated hours × hourly floorAdd direct project purchases.
Self-employment references
Questions about free freelance hourly rate calculator
Why are billable hours lower than working hours?
Freelancers also spend time on sales, administration, bookkeeping, learning and unpaid communication. Only client-billable hours generate the revenue used in this calculation.
Should the hourly rate include business expenses?
Yes. Software, insurance, equipment, professional services and other operating costs must be funded by revenue, not only by the owner's target income.
Can I use this rate for fixed-price projects?
Yes, as a planning baseline. Estimate the billable hours and risk, then convert the result into a clear fixed project price and scope.
Use your rate in a quote or invoice
Compare flat-rate and hourly billing
Choose how to charge for the scope, revisions and extra work before you agree on a price.
Open resource →Calculate billable time
List your tasks, hours and rates, then download a timesheet as a PDF or CSV.
Open resource →Download freelance invoice templates
Present the work, hours, rates and payment terms in a clear invoice layout.
Open resource →