Hourly Rate Calculator for Freelancers
Work out what to charge per hour from the income you want, your expenses, tax and the hours you can really bill.
Formula
Billable hours = Hours per week x (52 - Weeks off)
Hourly rate = Revenue needed / Billable hours
Why billable hours matter
You cannot bill every hour you work. Admin, marketing, sales calls and unpaid revisions all take time. Most freelancers bill 20-30 hours a week even when working full time, so base your rate on billable hours, not on a 40-hour week.
Example
Goal: $60,000 take-home, $6,000 expenses, 25% tax, 25 billable hours a week and 6 weeks off. Revenue needed is $88,000. Billable hours are 1,150. The rate is about $76.52 per hour.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your desired income and business expenses, adjust for tax, then divide by the number of hours you can realistically bill in a year.
Should I include taxes in my rate?
Yes. The tax rate lifts the revenue you must earn so that your take-home income still matches your goal after tax is paid.
Is a project price better than an hourly rate?
Many freelancers quote projects by value and use the hourly rate as a floor to make sure a project is worth the time.
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