Calculate exactly what you need to charge to meet your financial goals.
Your Calculation Results
Required Hourly Rate:
$0.00
Daily Rate (8h day):
$0.00
Annual Gross Revenue:
$0.00
Monthly Gross Revenue:
$0.00
How to Use the Freelance Hourly Rate Calculator
Setting your freelance rate is one of the most critical steps in building a sustainable business. Unlike a traditional salary, your freelance rate must cover your taxes, health insurance, software subscriptions, and "unbillable" time (like marketing and bookkeeping).
Understanding the Inputs
Desired Monthly Net Income: This is the "take-home" pay you want in your personal bank account after all business expenses and taxes are paid.
Monthly Business Expenses: Include your coworking space, software (Adobe, Zoom, Slack), hardware upgrades, insurance, and professional fees.
Billable Hours per Week: Be realistic. If you work 40 hours a week, you might only spend 25 hours on client work. The rest is administration and sales.
Tax Percentage: Depending on your location, freelancers should typically set aside 20% to 35% for income and self-employment taxes.
The Math Behind the Calculation
The formula used by this calculator ensures your gross revenue covers everything:
If you want to take home $5,000 a month, have $500 in expenses, and expect to pay 25% in taxes, you actually need a gross monthly income of $7,333.33. If you bill 20 hours per week (86.6 hours per month), your minimum hourly rate should be $84.68.
function calculateFreelanceRate() {
var desiredIncome = parseFloat(document.getElementById("desiredIncome").value);
var monthlyExpenses = parseFloat(document.getElementById("monthlyExpenses").value);
var billableHours = parseFloat(document.getElementById("billableHours").value);
var taxPercentage = parseFloat(document.getElementById("taxPercentage").value);
// Validation
if (isNaN(desiredIncome) || isNaN(monthlyExpenses) || isNaN(billableHours) || isNaN(taxPercentage)) {
alert("Please enter valid numbers in all fields.");
return;
}
if (billableHours = 100) {
alert("Please enter valid hours (greater than 0) and tax rate (less than 100).");
return;
}
// Calculation Logic
// 1. Calculate how much gross revenue is needed before tax to result in the desired net + expenses
// Formula: Net = Gross * (1 – TaxRate) -> Gross = Net / (1 – TaxRate)
var totalMonthlyNeeds = desiredIncome + monthlyExpenses;
var monthlyGrossNeeded = totalMonthlyNeeds / (1 – (taxPercentage / 100));
// 2. Calculate total billable hours per month (approx 4.33 weeks per month)
var monthlyHours = billableHours * 4.333;
// 3. Final Hourly Rate
var hourlyRate = monthlyGrossNeeded / monthlyHours;
// 4. Day Rate (assuming 8 hour billable day based on that hourly rate)
var dayRate = hourlyRate * 8;
// 5. Annual Gross
var annualGross = monthlyGrossNeeded * 12;
// Display Results
document.getElementById("resultsArea").style.display = "block";
document.getElementById("hourlyResult").innerHTML = "$" + hourlyRate.toFixed(2);
document.getElementById("dailyResult").innerHTML = "$" + dayRate.toFixed(2);
document.getElementById("annualResult").innerHTML = "$" + annualGross.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("monthlyGrossResult").innerHTML = "$" + monthlyGrossNeeded.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Scroll to results
document.getElementById("resultsArea").scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}