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Income target and billable time

Free freelance hourly rate calculator

Calculate in your browser

Enter your target annual income, business expenses, tax buffer, weeks off and billable hours to estimate a sustainable freelance hourly rate.

Visual guideTurn an income goal into a rateDivide required revenue by realistic billable hours.
Divide required revenue by realistic billable hours.INCOME$4,000÷HOURLY RATE$5,200REVENUE ÷ BILLABLE HOURS

Free, no sign-up, and the entered values stay in your browser.

Freelance hourly rateLive calculation
USD
USD
%
weeks
hours
Required annual revenue$72,000.00
Annual billable hours1,200 hours
Rate before buffer$60.00
Suggested hourly rate$75.00
This planning estimate is not a tax calculation. Review local taxes, benefits, unpaid administration, market pricing and project risk before quoting a client.

Formula

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.

Use the result

Move from calculation to a customer document.

Confirm the measurements, rates, tax treatment and project scope before relying on an estimate. Keep the calculation with the customer record, then place the verified figures in an itemized estimate, quote or invoice.

These browser calculations support planning and pricing. They do not replace field measurements, supplier quotations, payroll, accounting, tax, lending or professional advice.

Frequently asked questions

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.

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