Finance & Money Calculators

Freelance Hourly Rate Calculator

Estimate a freelance hourly rate from target income, overhead, taxes, non-billable time, and annual hours.

Freelance Hourly Rate Calculator — Online Calculator

Freelance Hourly Rate Calculator

Calculate the true hourly billing rate required to meet your net income target after taxes, business overhead, and non-billable time.

$
Take-home money you want to keep
$
Software, hardware, health, accounting
%
Self-employment + income taxes
Average freelancer logs 20-30 billable hrs
48 weeks gives 4 weeks off/holidays
True Minimum Hourly Rate

$110/hr

$880/day (8-hour day)

Required Gross Billings

$132,000

To net $90,000 after tax & expenses

Total Billable Hours

1,200 hrs

25 hrs/wk × 48 wks

Multiplier vs Naive Rate

2.54× Naive

Naive: $43.27/hr ($salary ÷ 2080)

Charge at least $110/hour ($880/day) to net $90,000.

Notice this is 2.54× higher than the naive $43/hr rate. The difference accounts for 4 weeks off, non-billable client acquisition and admin time (15 hrs/week unbilled), $12,000 in business expenses, and $30,000 in taxes.

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Disclaimer: This tool provides informational results only and should not be used as professional advice.

The Freelance Hourly Rate Calculator estimates a sustainable hourly billing rate based on target take-home salary, business overhead expenses, estimated tax allowance, billable weeks per year, and weekly billable hours.

Required Hourly Rate=Target Annual Income+Business Expenses+Tax AllowanceBillable Weeks×Weekly Billable Hours\text{Required Hourly Rate} = \frac{\text{Target Annual Income} + \text{Business Expenses} + \text{Tax Allowance}}{\text{Billable Weeks} \times \text{Weekly Billable Hours}}

Strategic Planning Considerations

  • Billable vs. Non-Billable Hours: Freelancers typically spend 20% to 35% of their working hours on non-billable overhead such as client proposals, invoicing, marketing, and professional development.
  • Taxes and Self-Employment Overhead: Remember to account for self-employment taxes (FICA / Medicare / Social Security or local equivalent), health insurance, retirement contributions, and unpaid vacation or sick leave.

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