Freelance Hourly Rate Calculator
The rate you must charge to hit your income target.
Enter your values
Enter the target take-home income in $.
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.
- Minimum hourly rate
- $103.57
- Day rate (8 hrs)
- $828.60
- Required annual revenue
- $119,111.11
- Billable hours per year
- 1,150
Quick answer
A freelance rate must cover target income plus taxes and business costs, divided only by genuinely billable hours — usually 50–70% of your working week.
At a glance
| What it does | The rate you must charge to hit your income target. |
|---|---|
| Category | Business |
| Inputs needed | Target take-home income, Annual business expenses, Effective tax rate, Billable hours per week, Working weeks per year |
| Main output | Minimum hourly rate |
| Cost | Free — no sign-up, no download |
How to use the Freelance Hourly Rate Calculator
- 1Enter the take-home income you want.
- 2Add business expenses and your tax rate.
- 3Be honest about billable hours per week.
Inputs explained
- Target take-home income($)
- Enter the target take-home income in $.
- Annual business expenses($)
- 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
- Target take-home income80000 $
- Annual business expenses8000 $
- Effective tax rate28 %
- Billable hours per week25 hrs
- Working weeks per year46 weeks
Results
- Minimum hourly rate$103.57
- Day rate (8 hrs)$828.60
- Required annual revenue$119,111.11
- Billable hours per year1,150
Frequently asked questions
Why not use 40 billable hours?
Admin, sales, invoicing and dead time consume much of the week. Most sustainable freelancers bill 20–30 hours.
Should I charge by project instead?
Often yes — value pricing rewards efficiency, but you still need this rate as the floor for scoping a project.
What do I need to enter into the Freelance Hourly Rate Calculator?
Just 5 values: target take-home income, 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 Calculator work out the answer?
A freelance rate must cover target income plus taxes and business costs, divided only by genuinely billable hours — usually 50–70% of your working week. The working is shown step by step so you can verify the result by hand.
Is the Freelance Hourly Rate 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.