Freelance Hourly Rate Calculator
Set an hourly rate that covers your target income, taxes, expenses and unbilled time.
About the Freelance Hourly Rate Calculator
Enter the take-home income you want, your yearly business expenses, the tax rate on profit, the weeks you'll work, the hours a week you can actually bill and a buffer for slow periods. The calculator gives the hourly and day rate you need.
Freelancers can't bill 40 hours a week for 52 weeks: admin, sales, holidays and sickness take time. Divide the revenue you need by realistic billable hours, often 20–30 a week.
The formula
Rate = (income ÷ (1 − tax) + expenses) × (1 + buffer) ÷ billable hours
Worked example
80,000 take-home, 10,000 expenses, 30% tax, 46 weeks × 25 billable hours, 10% buffer
- Revenue needed: (80,000 ÷ 0.7 + 10,000) × 1.1 = 136,714
- Billable hours: 1,150
- Hourly rate 118.88; day rate (8 h) 951
Questions people ask
Should I charge by the day or project?
Project or value pricing can earn more once you know your hourly floor.
What about pension?
Include pension contributions in your target income.
Why isn't my rate just my old salary ÷ 2,080?
Employers also pay for holidays, equipment, taxes and benefits, and fill all your hours with work.