Part-Time Hourly Rate Calculator
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The total amount you want to earn in a year.
Vacation, sick days, or holidays (Standard is 2-4 weeks).
Add buffer for taxes, insurance, or unbillable admin tasks.
Calculation Results
Required Hourly Rate:
$0.00
Total Billable Hours/Year:
0
Weekly Gross Income:
$0.00
Monthly Gross Income (Avg):
$0.00
Actual Annual Gross:
$0.00
Tip: If you are moving from full-time to part-time, remember that part-time roles often lack benefits like health insurance. Use the "Overhead & Benefits Markup" field to account for these extra personal costs.
How to Calculate Your Part-Time Hourly Rate
Determining the correct hourly rate for part-time work requires more than simply dividing a desired salary by 2,080 (the standard number of working hours in a full-time year). Whether you are a freelancer, a consultant, or an employee negotiating a part-time contract, you must factor in reduced hours, lack of paid time off, and potential overhead costs.
The Core Formula
The most effective way to calculate your part-time hourly rate is to work backward from your financial goals. The basic formula used in this calculator is:
Hourly Rate = (Target Annual Income) ÷ (Weekly Hours × Working Weeks)
Key Factors in the Calculation
- Target Annual Income: This is your "take-home" goal or your gross salary target. If you are transitioning from a full-time job paying $60,000, you might aim for $30,000 for a half-time role.
- Actual Working Weeks: A year has 52 weeks, but you likely won't work all of them. If you take 2 weeks of vacation and anticipate 1 week of sick time or holidays, your billable weeks are actually 49. Failing to account for this will result in a rate that is too low to meet your income goals.
- Overhead & Benefits Buffer: Full-time employment often comes with hidden value (health insurance, 401k matching, paid leave). As a part-timer or contractor, you lose these. Experts often recommend adding 20% to 30% to your base rate to compensate for self-employment taxes and the purchase of private benefits.
Example Calculation
Let's say you want to earn $40,000 per year working part-time. You plan to work 25 hours per week and take 3 weeks off per year.
- Calculate Billable Weeks: 52 total weeks – 3 weeks off = 49 working weeks.
- Calculate Total Hours: 49 weeks × 25 hours/week = 1,225 billable hours/year.
- Calculate Base Rate: $40,000 ÷ 1,225 hours = $32.65 per hour.
If you wanted to add a 10% buffer for expenses, the rate would become $35.92 per hour.
Why "Billable Hours" Matter
For freelancers and part-time contractors, not every hour worked is billable. You may spend time invoicing, emailing, or marketing. If you work 20 hours a week but 5 of them are administrative, you only have 15 billable hours. Adjust your "Hours You Want to Work" input to reflect only the hours you can actually charge for to ensure your rate covers your admin time.