#freelance-rate-calculator-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 0 auto;
background: #fff;
padding: 20px;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0,0,0,0.1);
color: #333;
}
.calc-header {
text-align: center;
margin-bottom: 30px;
border-bottom: 2px solid #0073aa;
padding-bottom: 15px;
}
.calc-header h2 {
margin: 0;
color: #23282d;
font-size: 28px;
}
.calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
margin-bottom: 25px;
}
.calc-input-group {
display: flex;
flex-direction: column;
}
.calc-input-group label {
font-weight: 600;
margin-bottom: 8px;
font-size: 14px;
color: #555;
}
.calc-input-group input {
padding: 10px;
border: 1px solid #ddd;
border-radius: 4px;
font-size: 16px;
}
.calc-input-group input:focus {
border-color: #0073aa;
outline: none;
box-shadow: 0 0 0 2px rgba(0,115,170,0.2);
}
.calc-input-hint {
font-size: 12px;
color: #888;
margin-top: 4px;
}
.calc-btn-wrapper {
text-align: center;
margin: 20px 0;
}
.calc-btn {
background-color: #0073aa;
color: white;
border: none;
padding: 12px 30px;
font-size: 18px;
border-radius: 5px;
cursor: pointer;
transition: background 0.3s;
font-weight: bold;
}
.calc-btn:hover {
background-color: #005177;
}
#calc-results {
background-color: #f0f6fa;
border: 1px solid #cce0eb;
border-radius: 6px;
padding: 20px;
display: none;
margin-top: 20px;
}
.result-row {
display: flex;
justify-content: space-between;
align-items: center;
margin-bottom: 10px;
font-size: 16px;
}
.result-row.final {
margin-top: 15px;
padding-top: 15px;
border-top: 1px solid #ddd;
font-weight: bold;
font-size: 20px;
color: #0073aa;
}
.calc-article {
margin-top: 50px;
line-height: 1.6;
color: #444;
}
.calc-article h3 {
color: #23282d;
margin-top: 25px;
border-left: 4px solid #0073aa;
padding-left: 10px;
}
.calc-article p {
margin-bottom: 15px;
}
.calc-article ul {
margin-bottom: 20px;
padding-left: 20px;
}
.calc-article li {
margin-bottom: 8px;
}
@media (max-width: 600px) {
.calc-grid {
grid-template-columns: 1fr;
}
}
Total Revenue Needed:
$0.00
Annual Billable Hours:
0
Minimum Hourly Rate:
$0.00
*This rate covers your salary, expenses, taxes, and profit margin.
How to Calculate Your Freelance Hourly Rate
Setting the right hourly rate is one of the most critical challenges for freelancers and consultants. Charging too little can lead to burnout and financial strain, while charging too much without justification can alienate potential clients. This Freelance Hourly Rate Calculator uses a "bottom-up" approach to determine your rate based on your real-life financial needs rather than guessing market averages.
Understanding the Formula
Many freelancers make the mistake of simply dividing their desired salary by 2,080 (a standard 40-hour work week year). This approach fails because it ignores non-billable time, overhead costs, and taxes. Our calculator uses a more robust formula:
- Total Revenue Needed: This includes your desired take-home salary, annual business expenses (overhead), a buffer for income taxes, and a business profit margin.
- Billable Hours: Unlike an employee, a freelancer cannot bill 40 hours a week. You must account for marketing, admin work, and time off. A healthy average is often 20-30 billable hours per week.
- The Calculation: Total Revenue Needed ÷ (Weeks Working × Billable Hours/Week).
Key Metrics Explained
Overhead Costs: These are business expenses that recur monthly, such as software subscriptions (Adobe, Office 365), health insurance premiums, internet bills, co-working space fees, and accounting services.
Billable vs. Non-Billable Hours: If you work 40 hours a week, you might only spend 25 of those actually doing work you can invoice. The remaining 15 hours are spent on finding new clients, invoicing, and professional development. Your hourly rate must be high enough during those 25 hours to pay for the other 15.
Why Include a Profit Margin?
A salary covers your personal living expenses. A profit margin (typically 10-20%) is money that stays in the business. This capital allows you to invest in new equipment, hire subcontractors during busy periods, or survive lean months without dipping into your personal salary.
function calculateHourlyRate() {
// Get input values using var
var desiredIncome = document.getElementById('desiredIncome').value;
var monthlyOverhead = document.getElementById('monthlyOverhead').value;
var billableHours = document.getElementById('billableHours').value;
var weeksOff = document.getElementById('weeksOff').value;
var taxBuffer = document.getElementById('taxBuffer').value;
var profitMargin = document.getElementById('profitMargin').value;
// Validate inputs
if (desiredIncome === "" || monthlyOverhead === "" || billableHours === "" || weeksOff === "") {
alert("Please fill in all the required fields to calculate your rate.");
return;
}
// Convert to numbers
var incomeNum = parseFloat(desiredIncome);
var overheadNum = parseFloat(monthlyOverhead);
var hoursNum = parseFloat(billableHours);
var weeksOffNum = parseFloat(weeksOff);
var taxRateNum = parseFloat(taxBuffer) / 100;
var profitRateNum = parseFloat(profitMargin) / 100;
// 1. Calculate Base Annual Costs (Income + Overhead)
var annualOverhead = overheadNum * 12;
var baseNeed = incomeNum + annualOverhead;
// 2. Adjust for Tax and Profit
// Formula: Total Revenue = Base Need / (1 – TaxRate – ProfitRate)
// Note: This ensures that after taking out tax% and profit% from the Total, the remainder covers Base Need.
// However, a simpler, common freelance approach is adding percentage markups.
// We will use the markup method which is safer for estimation: Base * (1 + Tax + Profit)
// Or the Gross Up method: Base / (1 – (Tax + Profit)).
// Let's use the Gross Up method to be mathematically accurate for "Keeping" the net income.
var totalDeductionRate = taxRateNum + profitRateNum;
// Safety check to prevent division by zero or negative
if(totalDeductionRate >= 1) {
alert("Your Tax Buffer and Profit Margin percentages are too high (>= 100%). Please reduce them.");
return;
}
var totalRevenueNeeded = baseNeed / (1 – totalDeductionRate);
// 3. Calculate Billable Time
var workingWeeks = 52 – weeksOffNum;
if (workingWeeks <= 0) {
alert("Weeks off cannot equal or exceed 52 weeks.");
return;
}
var totalBillableHours = workingWeeks * hoursNum;
if (totalBillableHours <= 0) {
alert("Total billable hours must be greater than zero.");
return;
}
// 4. Final Calculation
var requiredRate = totalRevenueNeeded / totalBillableHours;
// Update UI
document.getElementById('resTotalRevenue').innerHTML = '$' + totalRevenueNeeded.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalHours').innerHTML = totalBillableHours.toLocaleString();
document.getElementById('resHourlyRate').innerHTML = '$' + requiredRate.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show results container
document.getElementById('calc-results').style.display = 'block';
}