Freelancer Hourly Rate Calculator
Calculate the rate you need to charge to meet your lifestyle and business goals.
The take-home pay you want before taxes.
Software, hosting, insurance, equipment, etc.
Total hours you intend to work (billable + admin).
Vacation, sick days, and holidays.
Percentage of time actually spent on client work vs. marketing/admin. (Industry avg: 60-75%)
Minimum Hourly Rate
$0.00
Daily Rate (8h)
$0.00
Total Revenue Needed
$0.00
Billable Hours / Year
0
How to Calculate Your Freelance Rate
Setting the right hourly rate is one of the most critical challenges for freelancers, consultants, and contractors. Unlike a salaried employee, your rate must cover not just your desired take-home pay, but also your business expenses, taxes, and non-billable time.
1. The "Billable Hours" Trap
Many new freelancers make the mistake of dividing their desired salary by 2,080 (40 hours x 52 weeks). This inevitably leads to undercharging. In reality, you cannot bill for every hour you sit at your desk. You need to account for:
- Admin Tasks: Invoicing, emails, and file management.
- Business Development: Marketing, networking, and pitching clients.
- Skill Development: Learning new tools or coding languages.
A healthy freelancer typically maintains a billable utilization rate between 60% and 75%.
2. Accounting for Overhead
Your gross revenue is not your profit. Before you pay yourself, your business must pay for:
- Software subscriptions (Adobe, Office, Project Management tools).
- Hardware costs (Laptops, Cameras, etc.).
- Health insurance and self-employment taxes.
- Coworking space or home office costs.
This calculator adds your "Annual Business Overhead" to your "Target Net Income" to determine the total revenue your business needs to generate.
3. Time Off Matters
Freelancers don't get paid vacation time. To maintain a sustainable career and avoid burnout, you must factor holidays, sick days, and vacation weeks into your rate calculation. If you plan to take 4 weeks off per year, you must earn your entire annual income in the remaining 48 weeks.
Formula Used
Hourly Rate = (Target Income + Expenses) / (Working Weeks × Hours per Week × Billable %)