Determine exactly what you need to charge to meet your income goals.
Please enter valid numbers in all fields.
Minimum Hourly Rate:$0.00
Required Annual Gross Revenue:$0.00
Total Billable Hours / Year:0
Weekly Revenue Target:$0.00
function calculateHourlyRate() {
// Get input values
var desiredNet = document.getElementById('desiredNetIncome').value;
var expenses = document.getElementById('annualExpenses').value;
var taxRate = document.getElementById('taxRate').value;
var weeklyHours = document.getElementById('billableHours').value;
var weeksOff = document.getElementById('vacationWeeks').value;
var bufferPercent = document.getElementById('unbillablePercent').value;
// Element for error display
var errorMsg = document.getElementById('errorMsg');
var resultBox = document.getElementById('frc-results');
// Validate inputs
if (desiredNet === "" || expenses === "" || taxRate === "" || weeklyHours === "" || weeksOff === "") {
errorMsg.style.display = 'block';
resultBox.style.display = 'none';
return;
}
// Parse numbers
var net = parseFloat(desiredNet);
var exp = parseFloat(expenses);
var tax = parseFloat(taxRate);
var hoursPerWeek = parseFloat(weeklyHours);
var weeksVacation = parseFloat(weeksOff);
var buffer = parseFloat(bufferPercent) || 0;
if (isNaN(net) || isNaN(exp) || isNaN(tax) || isNaN(hoursPerWeek) || isNaN(weeksVacation)) {
errorMsg.style.display = 'block';
resultBox.style.display = 'none';
return;
}
errorMsg.style.display = 'none';
// 1. Calculate Working Weeks
var workingWeeks = 52 – weeksVacation;
if (workingWeeks = 1) taxDecimal = 0.99; // Prevent divide by zero or negative
var totalGrossNeeded = (net + exp) / (1 – taxDecimal);
// 3. Calculate Total Billable Hours
var totalHours = workingWeeks * hoursPerWeek;
// Adjust for buffer (if they want to charge more to cover slack time)
// If buffer is 20%, we effectively reduce available billable hours or increase rate
// Usually, buffer implies "I bill for X hours, but I work Y hours".
// Here we simply adjust the rate: Rate = Gross / (Hours * (1 – Buffer))
var bufferDecimal = buffer / 100;
var effectiveBillableHours = totalHours * (1 – bufferDecimal);
if (effectiveBillableHours <= 0) effectiveBillableHours = 1;
// 4. Calculate Hourly Rate
var hourlyRate = totalGrossNeeded / effectiveBillableHours;
// 5. Calculate Weekly Target (during working weeks)
var weeklyTarget = totalGrossNeeded / workingWeeks;
// Update DOM
document.getElementById('resultRate').innerHTML = '$' + hourlyRate.toFixed(2);
document.getElementById('resultGross').innerHTML = '$' + totalGrossNeeded.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultHours').innerHTML = effectiveBillableHours.toFixed(0);
document.getElementById('resultWeekly').innerHTML = '$' + weeklyTarget.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show results
resultBox.style.display = 'block';
}
Why Your Hourly Rate Should Be Higher Than You Think
One of the most common mistakes new freelancers make is calculating their hourly rate based on their previous full-time salary. If you earned $40/hour at your day job, charging $40/hour as a freelancer will likely lead to a significant pay cut.
The Hidden Costs of Freelancing
When you are employed, your employer covers roughly 20% to 30% of your salary in additional costs, including health insurance, paid time off, equipment, and payroll taxes. As a freelancer, you are responsible for all of these.
This Freelance Hourly Rate Calculator takes into account three critical factors that simple division ignores:
Self-Employment Taxes: You are responsible for both the employer and employee portion of Social Security and Medicare taxes.
Non-Billable Hours: You cannot bill 40 hours a week, every week. You spend time on marketing, invoicing, and administration.
Overhead Expenses: Software subscriptions, hardware, internet, and office space come directly out of your pocket.
How to Use This Calculator
To get an accurate rate, be realistic with your inputs:
Desired Net Income: This is the "take-home" pay you want for your personal lifestyle.
Billable Hours: Most successful freelancers only bill 20-25 hours per week. The rest is spent on business management.
Weeks Off: Don't forget to account for sick days and holidays. If you don't plan for them financially, you can't afford to take them.
What is the "Buffer for Non-Billable Work"?
Even if you plan to work 30 hours a week, client delays or project gaps can occur. Adding a buffer (e.g., 10-20%) reduces your effective billable hours in the calculation, forcing the required hourly rate up. This ensures that even if you have a slow week, your average rate covers the downtime.