Freelance Hourly Rate Calculator
Work backwards from the income you want to the rate you need to charge.
Method and limitations · Report an error
Quick answer
Work backwards from income to an hourly rate
This freelance rate calculator estimates the annual revenue required to cover target take-home income, business expenses and the entered tax rate. It then spreads that revenue across realistic billable hours rather than every working hour.
Use this calculator when
- Setting a minimum freelance hourly or day rate
- Accounting for unpaid admin, sales and holiday time
- Testing how expenses or billable capacity change a quote
How to read the result
The result is a baseline revenue rate under the entered assumptions, not a market price. Taxes vary by location and business structure, while utilisation, late payment and profit targets may require an additional buffer.
- Use billable hours rather than total hours worked
- Confirm the tax estimate for your own location and circumstances
Method
How it works
The target take-home income is grossed up using the entered tax and contribution rate, then annual business expenses are added to find required revenue.
Billable hours equal weekly billable hours multiplied by working weeks. Required revenue divided by those hours gives the hourly rate; the day rate simply multiplies it by eight.
Common questions
Frequently asked questions
Why should billable hours be lower than total working hours?
Administration, sales, holidays and unpaid tasks may reduce the hours that can actually be invoiced; the calculator uses whatever billable figure the user enters.
How does the tax-rate input affect the required rate?
The target take-home income is divided by one minus the tax rate, increasing the pre-tax revenue requirement.
Does the hourly rate include business expenses?
Yes. Entered annual expenses are added before the required revenue is divided by billable hours.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.