Freelancer Hourly Rate Calculator

Determine your billable rate based on target net income, overhead & billable capacity

Income & Overhead

Recommended Pricing

Minimum Hourly Rate

$72.00/hr

To hit net income target
Standard Daily Day-Rate

$576.00

Based on 8-hour day billing
Total Gross Revenue Needed (Income + Tax + Expenses)$86,000
Working Weeks per Year48.0 weeks
Total Annual Billable Hours1,200 hrs
Average Monthly Revenue Needed$7,167

The Freelancer's Rule of Billable Hours

Many new freelancers make the mistake of dividing their target salary by 2,080 hours (40 hours × 52 weeks). However, independent professionals typically spend only 50% to 65% of their working hours on billable client work. The remainder is spent on marketing, bookkeeping, client communication, proposal drafting, and skill development.

Frequently Asked Questions

Should I quote hourly or fixed project fees?
Value-based and fixed project pricing is generally more lucrative for experienced freelancers because as your speed and expertise increase, hourly billing penalizes your efficiency. Use this hourly rate as your internal baseline to quote project totals.

How to Use the Freelance Hourly Rate Calculator

  1. Enter your Target Annual Income.
  2. Input your annual business Expenses & Overhead (software, equipment, insurance).
  3. Specify your planned Billable Hours per Week and Vacation / Sick Weeks per year.
  4. Include an estimated percentage for Self-Employment Taxes (approx. 25-30%).
  5. Click Calculate Minimum Rate to get your target hourly and daily billable rates.

Freelance Billable Rate Formula

Gross Target Revenue = (Desired Net Income + Annual Expenses) / (1 - Tax Rate)
Billable Hours/Year = Billable Hours/Week × (52 - Non-Working Weeks)
Required Hourly Rate = Gross Target Revenue / Billable Hours/Year

Practical Step-by-Step Example

Targeting $80,000 net income with $10,000 expenses, 25% tax, working 25 billable hrs/wk with 4 weeks off:

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