Freelance Hourly Rate Target Calculator
Work backward from income goal to hourly rate.
Enter your values
Enter the take-home income goal in $/yr.
Enter the annual business expenses in $.
Enter the effective tax rate in %.
Enter the billable hours per week in hrs.
Enter the working weeks per year in weeks.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Target hourly rate
- $84.44
- Billable hours per year
- 1,200
- Gross revenue needed
- $101333.33
- Daily rate at 6 hrs billable
- $506.67
Quick answer
Target hourly rate is your income goal plus expenses and taxes, divided by billable hours per year.
rate = (income goal + expenses) / (1 - tax rate) / billable hours
At a glance
| What it does | Work backward from income goal to hourly rate. |
|---|---|
| Category | Business |
| Inputs needed | Take-home income goal, Annual business expenses, Effective tax rate, Billable hours per week, Working weeks per year |
| Main output | Target hourly rate |
| Formula | rate = (income goal + expenses) / (1 - tax rate) / billable hours |
| Cost | Free — no sign-up, no download |
How to use the Freelance Hourly Rate Target Calculator
- 1Enter the take-home income you want and yearly business expenses.
- 2Enter your effective tax rate and realistic billable hours.
- 3The rate accounts for the fact that not every working hour is billable.
Inputs explained
- Take-home income goal($/yr)
- Enter the take-home income goal in $/yr.
- Annual business expenses($)
- Enter the annual business expenses in $.
- Effective tax rate(%)
- Enter the effective tax rate in %.
- Billable hours per week(hrs)
- Enter the billable hours per week in hrs.
- Working weeks per year(weeks)
- Enter the working weeks per year in weeks.
Worked example
Using the values the calculator loads with:
Inputs
- Take-home income goal70000 $/yr
- Annual business expenses6000 $
- Effective tax rate25 %
- Billable hours per week25 hrs
- Working weeks per year48 weeks
Results
- Target hourly rate$84.44
- Billable hours per year1,200
- Gross revenue needed$101333.33
- Daily rate at 6 hrs billable$506.67
Frequently asked questions
Why is billable time less than total hours?
Admin, sales and unpaid work eat into the week — 20-30 billable hours is common for freelancers.
Should I round the rate up?
Yes, round up and leave room for slow months or scope creep.
What do I need to enter into the Freelance Hourly Rate Target Calculator?
Just 5 values: take-home income goal, annual business expenses, effective tax rate, billable hours per week, working weeks per year. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Freelance Hourly Rate Target Calculator work out the answer?
Target hourly rate is your income goal plus expenses and taxes, divided by billable hours per year. It applies the formula rate = (income goal + expenses) / (1 - tax rate) / billable hours and shows the working so you can check each step by hand.
Is the Freelance Hourly Rate Target Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.