Professional Hourly Rate Calculator
To meet your goals, your minimum hourly rate should be:
$0.00
Which is approximately $0.00 per day
How to Determine Your Professional Rate
Calculating your professional "rate" is one of the most critical steps for freelancers, consultants, and service providers. Many professionals make the mistake of simply dividing a corporate salary by 2,000 hours, but this fails to account for the hidden costs of self-employment.
The "My Rate" Formula
To find your ideal hourly rate, you must account for your desired personal income, your business overhead (software, hardware, insurance, marketing), and the fact that you cannot bill 40 hours a week. You must also account for administrative time, pitching, and professional development.
The formula used in this calculator:
(Desired Annual Income + Annual Expenses) / ((52 – Weeks Off) * Weekly Billable Hours) = Hourly Rate
Calculation Example
| Metric | Example Figure |
|---|---|
| Target Income | $70,000 |
| Annual Expenses (Taxes, Health, Tools) | $20,000 |
| Total Revenue Needed | $90,000 |
| Working Weeks (52 – 4 weeks off) | 48 Weeks |
| Billable Hours (20 per week) | 960 Hours/Year |
| Final Hourly Rate | $93.75 / hour |
Factors That Influence Your Rate
When setting your final rate, consider these three additional factors:
- Market Demand: Is your skill set in high demand with low supply? If so, you can charge a premium.
- Value-Based Pricing: If your work generates $100,000 in revenue for a client, charging $5,000 is reasonable, regardless of how many hours it takes.
- Experience Level: Senior experts often charge 3x to 5x the rate of juniors because they work faster and make fewer mistakes.