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Freelance Hourly Rate Calculator

Reverse-engineer the hourly rate you actually need to charge — starting from the income you want to keep, not a number you guessed.

$

Your target income after business costs and tax.

$

Software, hardware, insurance, accountant, coworking, etc.

%

Rough combined income + self-employment tax rate.

52 minus holiday + sick.

%

Share that is billable.

Minimum hourly rate

$71.91

≈ $575.25 per 8-hour day

Take-home target$60,000
Profit needed (pre-tax)$80,000
+ Business expenses$6,000
Required annual revenue$86,000
Billable hours / year1,196
Rate across all worked hours(incl. non-billable)$46.74

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Why your hourly rate is not your old salary divided by 2,080

Employees are paid for roughly 2,080 hours a year, but a freelancer can rarely bill all of them. Holidays, sick days, admin, marketing, invoicing, and gaps between projects all eat into the hours you can actually charge for. If you divide your target income by 2,080 you will badly underprice yourself.

On top of that, an employer silently pays for things you now cover yourself: payroll taxes, health insurance, paid time off, equipment, software, and a pension. Your rate has to absorb all of it and still leave the take-home you want.

How this calculator works

Start with the take-home income you want in a year. Add your annual business expenses (software, hardware, insurance, accountant, coworking). Add a margin for the tax you'll owe on your profit. Then divide by the hours you can realistically bill — your working weeks minus holiday and sick time, multiplied by the share of each week that is actually billable.

The result is the floor: the rate below which you are effectively paying to work. Most freelancers should price above the floor to leave room for growth and slow periods.

Frequently asked questions

What is a good billable-hours percentage?
Most full-time freelancers bill 50–70% of their working hours once admin, marketing, and downtime are removed. Newer freelancers often sit closer to 40–50%. The calculator defaults to 65% so you can adjust to your reality.
Should I include tax in my hourly rate?
Yes. As a freelancer you pay income tax and self-employment/social charges on your profit, which an employer used to handle. Add a tax margin so your take-home target survives after tax. Use the self-employment tax estimator for a US figure.
How many billable weeks should I assume?
Start from 52 weeks, then subtract holiday and expected sick days. Four to six weeks off is realistic for a sustainable schedule, leaving roughly 46–48 working weeks.
Is the result the rate I should charge clients?
It is your minimum sustainable rate — the floor. Charge above it where your skills, results, and market allow. Pricing on value rather than hours usually beats this number.
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Last updated 2026-06-01.