Business
Freelance hourly rate calculator
Start from what you want to take home, add business costs and a tax set-aside you choose, and divide by the hours you can actually bill.
What this means
- To take home $80,000.00, you need $116,666.67 in revenue over 1150 billable hours, or $101.45 an hour.
- Billable hours are usually well below hours worked, because of sales, admin, and gaps between projects.
What if
About this calculator
What this calculator does
It grosses up your take-home goal for the tax share you set aside, adds business expenses, and divides by billable hours in a year.
How it is calculated
revenue needed = income / (1 - set-aside) + expenses
billable hours = hours per week * working weeks
rate = revenue needed / billable hours
How to read the result
The rate is the minimum to meet your goal if every billable hour is paid. Many freelancers add a buffer for slow months.
Sources and method
Standard arithmetic with no outside data. The formula is shown under How it is calculated, and unit tests check worked examples, including edge cases.
This page uses arithmetic only, with no outside data.
Questions
What tax set-aside should I use?
That depends on your country and situation. Ask a tax professional. This page does not estimate taxes.
Why so few billable hours?
Freelancers spend time on sales, admin, and learning that clients do not pay for.
How does this compare to a salary?
Use the salary to hourly calculator. Freelance rates need to cover costs and benefits an employer would pay.
Should I charge by the project?
Many freelancers do. Estimate the hours, multiply by this rate, and add a margin for risk.