Calculate exactly what you need to charge to meet your annual income goals.
Please fill in all fields with valid numbers.
Minimum Hourly Rate:$0.00
Daily Rate (8 hrs):$0.00
Gross Monthly Revenue Needed:$0.00
Total Annual Gross Revenue:$0.00
Why This Calculation Matters for Freelancers
One of the biggest mistakes new freelancers make is attempting to match their previous full-time hourly wage. This calculator takes a "bottom-up" approach to pricing, ensuring your rate covers not just your salary, but your overhead, taxes, and time off.
Understanding Your Billable Hours
You might work 40 hours a week, but you likely cannot bill for 40 hours. Administrative tasks, marketing, invoicing, and professional development are "non-billable." Most successful freelancers aim for 20 to 30 billable hours per week to maintain a healthy work-life balance and run their business effectively.
The Factors in This Calculator
Desired Net Income: The "take-home" pay you want for your lifestyle.
Overhead Expenses: Costs like software subscriptions, health insurance, internet, and office space.
Unpaid Time Off: Unlike employment, freelancers don't get paid vacation. You must price these weeks into your working hours.
Taxes: Self-employment tax can be significant. Adding a tax buffer ensures you don't undercharge and face a surprise bill.
Use the resulting Minimum Hourly Rate as your floor. Depending on your niche, experience, and value provided, you should aim to charge above this number to generate profit.
function calculateFreelanceRate() {
// Get inputs
var annualGoal = parseFloat(document.getElementById('annualGoal').value);
var monthlyExpenses = parseFloat(document.getElementById('monthlyExpenses').value);
var billableHours = parseFloat(document.getElementById('billableHours').value);
var weeksOff = parseFloat(document.getElementById('weeksOff').value);
var taxRate = parseFloat(document.getElementById('taxRate').value);
// Validation
var errorDisplay = document.getElementById('error-display');
var resultDisplay = document.getElementById('result-display');
if (isNaN(annualGoal) || isNaN(monthlyExpenses) || isNaN(billableHours) || isNaN(weeksOff) || isNaN(taxRate)) {
errorDisplay.style.display = 'block';
resultDisplay.style.display = 'none';
return;
}
// Logic Check for valid ranges
if (weeksOff >= 52 || billableHours = 1) {
taxDecimal = 0.99; // Prevent division by zero or negative
}
var totalNetNeeded = annualGoal + annualExpenses;
var grossRevenueNeeded = totalNetNeeded / (1 – taxDecimal);
// 3. Calculate Total Billable Hours per Year
var workingWeeks = 52 – weeksOff;
var totalAnnualHours = billableHours * workingWeeks;
// 4. Hourly Rate
var hourlyRate = grossRevenueNeeded / totalAnnualHours;
// 5. Daily Rate (Assuming standard 8 hour availability, though billable might vary)
// Or simply Hourly * 8 for a day rate quote
var dailyRate = hourlyRate * 8;
// 6. Monthly Revenue Target
var monthlyRevenue = grossRevenueNeeded / 12;
// Formatting
document.getElementById('hourlyResult').innerText = '$' + hourlyRate.toFixed(2);
document.getElementById('dailyResult').innerText = '$' + dailyRate.toFixed(2);
document.getElementById('monthlyRevenueResult').innerText = '$' + monthlyRevenue.toFixed(2);
document.getElementById('annualGrossResult').innerText = '$' + grossRevenueNeeded.toFixed(2);
// Show results
resultDisplay.style.display = 'block';
}