Pricing
Freelance Hourly Rate Calculator
Turn your income goal, expenses, taxes and real billable time into an hourly rate that actually covers your life and your business — not a rough guess.
Your minimum hourly rate
$65.48/hr
- Billable hours per year
- 1344
- Total working hours per year
- 1920
- Working weeks per year
- 48
- Gross revenue needed
- $88,000.00
- Set aside for tax
- $22,000.00
This is a minimum viable rate to hit your income goal — not a market-rate benchmark. Adjust for demand, experience and specialization.
How this calculation works
Gross-up for taxes and expenses
Your income goal plus annual expenses is grossed up by your tax rate: gross revenue = (income + expenses) ÷ (1 − tax rate).
Divide by real billable hours
We calculate billable hours per year from your working weeks, hours per week and billable percentage, then divide gross revenue by that — not by total hours worked.
Frequently asked questions
Why isn't my hourly rate just my target income divided by hours worked?+
Because not every hour you work is billable — time spent on admin, proposals, and finding clients doesn't generate revenue directly. This calculator separates total hours worked from billable hours, and also adds back business expenses and taxes, so the resulting rate actually covers your real costs.
What billable percentage should I use?+
Most established freelancers bill 60-80% of their working hours; new freelancers or those in relationship-heavy fields (consulting, agencies) are often closer to 50-60%. Track your own hours for a few weeks for an accurate number instead of guessing.
Does this rate account for market rates in my field?+
No — this is a cost-based minimum rate, the floor you need to hit your income goal. Your actual rate should also reflect what your market and experience level command; use this number as a sanity check, not a ceiling.
Click 'Use this rate in the Quote & Invoice calculators' to carry it straight into the Project Quote Calculator and Invoice Calculator.