Freelance Hourly Rate Calculator
Stop guessing your rate. Enter your target income, business costs and realistic billable hours to get the hourly rate you actually need to charge as a freelancer.
Why most freelancers undercharge
The single most common pricing mistake freelancers make is taking their old salary, dividing it by 2,080 hours, and calling that their hourly rate. That maths quietly ignores three brutal realities: you don't bill 40 hours a week, you pay your own expenses, and you cover your own time off, taxes and slow months. This freelance hourly rate calculator bakes those realities in so the number you charge actually supports the life you want.
How to use this calculator
- Enter the income you want to keep in a year.
- Add your yearly business expenses — software, hardware, insurance, subscriptions.
- Enter your realistic billable hours per week. Admin, marketing and email are not billable, so 25 is often closer to the truth than 40.
- Subtract holidays and sick days from 52 to get your working weeks.
The result is the rate you must charge on billable hours to reach your goal.
Billable vs working hours
This is where rates go wrong. A 40-hour week rarely contains 40 billable hours. You spend time pitching, invoicing, learning and resting. If only 25 of those hours earn money, your rate has to cover the other 15 too. Lowering the billable-hours figure raises your required rate — and that is correct, not greedy.
Turning the number into a price
Treat the result as your floor, not your ceiling. Value-based pricing, rush fees and retainers can all push your effective rate higher. But knowing your minimum viable rate means you will never again accept a project that quietly loses you money. Pair this with our Project Quote Calculator to turn the rate into a full quote.
Frequently Asked Questions
What is a good hourly rate for a freelancer?
There is no universal number — it depends on your costs, target income and how many hours you can realistically bill. This calculator gives you a personalised floor based on your own figures.
Should I include taxes in my target income?
Enter the amount you want to keep after tax, then treat tax separately, or raise the target to cover it. Our Freelance Tax Estimator can help you size the tax portion.
Why are my billable hours lower than my working hours?
Because admin, marketing, learning and breaks fill real working days. Most full-time freelancers bill 20–30 hours a week, not 40.
Is the calculator free and private?
Yes. It is completely free and runs entirely in your browser — none of your numbers are sent anywhere.