Hourly Rate Calculator
Enter your target income, business expenses, and realistic billable hours to find the hourly rate you actually need to charge.
Charge a rate that actually pays you
New freelancers often set a rate by halving a salary, then wonder why the money never adds up. The reason is that you can't bill every hour, and you carry costs an employer used to cover. This calculator works from the numbers that matter: the income you want to take home, the expenses you have to cover, and the hours you can realistically bill in a year.
Adjust the billable hours to be honest — admin, sales, and time off eat a big share of the week, so 1,000–1,300 billable hours is typical for full-time work. The rate you get is the floor beneath which you'd be working at a loss. It also shows an equivalent day rate and the total revenue you need to hit your target.
How it's calculated
Revenue needed = target income + expenses. Hourly rate = revenue needed ÷ billable hours. Day rate = hourly rate × 8. Everything updates live in your browser.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add your target take-home income to your annual business expenses, then divide by the number of hours you can actually bill in a year. That covers costs and pays you the income you want.
Why are billable hours lower than working hours?
Only some of your week is client work. Admin, sales, marketing, and time off are unbillable. Most full-time freelancers bill roughly 1,000–1,300 hours a year, not 2,080.
Should I include taxes and benefits?
Yes. Fold self-employment tax, health insurance, retirement, and software into either your target income or expenses so your rate genuinely covers them.
Is this calculator free and private?
Yes. It runs entirely in your browser with no sign-up, and none of your figures are stored or uploaded.
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