Freelance calculators
Freelance Hourly Rate Calculator
Turn an annual income target, expenses, taxes, and billable capacity into an hourly rate. Your inputs stay in this browser.
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What this calculator measures
This rate covers an income target, business expenses, and tax reserve across realistic billable capacity rather than every working hour.
Formula
Hourly Rate = (Income + Expenses + Tax Reserve) / (Work Weeks x Billable Hours per Week)
Worked example
- 1$80,000 income + $10,000 expenses + $20,000 tax reserve = $110,000.
- 246 weeks x 25 billable hours = 1,150 hours, requiring about $95.65 per hour.
How to interpret the result
Treat the result as a floor before profit, risk, scope uncertainty, and market positioning.
Common mistakes and limits
- Assuming 40 billable hours weekly, omitting unpaid leave, or treating a tax reserve as tax advice.
Frequently asked questions
Why separate billable hours?
Admin, sales, and learning consume time that cannot always be invoiced.
Is the tax reserve exact?
No. Use a qualified local adviser for tax obligations.
Can I use this for a day rate?
Multiply the hourly result by your billable hours per day.