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Freelance Hourly Rate Calculator

Start from what you need to earn and work back to a rate, instead of picking a number that feels about right. The rate has to reach your income goal after you allow for costs, time off, and the hours you cannot bill. Fill in the fields and the calculator does the rest.

Your target hourly rate
Day rate (× 8h)
Billable hours / year
Revenue you need / year
Effective utilisation

Rate calculator by profession

Each profession page starts with defaults for that field and pricing advice specific to it. Pick yours below.

How the freelance rate calculation works

The maths is simple once you accept that not every working hour is billable. The calculator does three things:

  1. Revenue needed = target income + business expenses, plus your profit buffer. If you set a tax percentage, it grosses this up so the rate covers tax too.
  2. Billable hours per year = (52 − weeks off) × billable hours per week.
  3. Hourly rate = revenue needed ÷ billable hours per year.

A common mistake is to assume a 40-hour billable week. Sales calls, admin, invoicing, learning, and marketing take a large slice of the week, so most full-time independents bill somewhere between 20 and 30 hours. If you plug in 40, you will set your rate too low and end up working for less than you think.

Why the profit buffer matters

Freelance income is uneven. Clients put work on hold, projects slip, and some invoices arrive late. A rate with no buffer only works if the year goes perfectly. A buffer of 10–20% means you still reach your goal in a normal year, and it gives you a cushion in a slow month so you are less tempted to underprice out of fear.

Hourly rate, day rate, or project price

This tool gives you an hourly and day rate you can defend. Many freelancers keep that as an internal floor and quote clients a fixed project price instead, so the client pays for an outcome rather than for hours on a timesheet. Build those quotes with the project quote builder, and set aside the right amount for tax with the tax set-aside calculator.

Recommended

Track where your hours go for a few weeks. Most people find they are billing fewer of them than they assumed. See our recommended time-tracking tools →

Frequently asked questions

How many billable hours should I assume?

Most full-time freelancers bill 20–30 hours a week. The rest of the week goes on admin, sales, and unpaid work. Start at 25 and adjust once you have tracked a few weeks of client work.

Should my target income be before or after tax?

Enter it before personal income tax. Then either use the "gross up for tax" field here, or set tax aside per invoice with the tax set-aside calculator.

Is this rate what I should charge every client?

Treat it as your floor. You can charge more for rush work, specialised expertise, or high-value outcomes, but you should rarely go below it.