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Freelance Hourly Rate Calculator

Work out the minimum hourly rate you need to charge as a freelancer. Enter the take-home income you want, your business costs, a tax set-aside percentage and how many hours you can realistically bill. The calculator shows your required hourly rate, day rate and monthly revenue target.

Runs entirely in your browser. Nothing you type is sent or stored.

Why freelancers undercharge

The most common pricing mistake is taking a salaried hourly figure and charging the same as a freelancer. An employee's salary is backed by paid holidays, sick days, employer-paid taxes and benefits, equipment and a steady flow of work. As a freelancer you pay for all of that yourself, and you are only paid for the hours you can bill to a client.

How this calculator works

It works backwards from the income you actually want to keep:

  1. Gross up for tax. If you want $60,000 after tax and set aside 25%, you need $80,000 of profit ($60,000 ÷ 0.75).
  2. Add business expenses. Software, equipment, insurance, accounting, internet, a co-working desk and professional fees are part of your cost of doing business.
  3. Estimate billable hours. Multiply working weeks by weekly hours, then by the share of time you can bill. The rest goes to admin, marketing, invoicing, learning and finding the next client.
  4. Divide. Required revenue ÷ billable hours = your minimum hourly rate.

Choosing realistic inputs

Working weeks: 52 minus holidays, vacation, sick days and quiet periods. 44–48 is realistic for most people.

Billable share: new freelancers often bill 50–60% of their working time. Experienced freelancers with repeat clients may reach 70–75%. Very few sustain more than that.

Tax set-aside: this depends heavily on your country, income level and deductions. The number here is only a savings percentage, not a tax calculation. Check your local rules or ask an accountant, then set aside that share of every payment you receive.

Using the result

The figure is a floor, not a target: charging less means you won't reach your income goal. Your market rate depends on your skills, niche, results and client budgets, and it is often higher. Many freelancers move to day rates or fixed project prices once they know their minimum hourly figure, because clients find them easier to approve and you are rewarded for working efficiently.

Review your rate at least once a year and whenever your expenses or goals change.

For tracking invoices and tax set-asides, see Freelancer Income Tracker: How Much to Set Aside for Taxes.

Want this as a spreadsheet you can keep?

The Freelancer Income & Invoice Tracker logs invoices and payments, shows paid, outstanding and overdue totals, a monthly income chart and a tax set-aside at your chosen rate.

Get the Freelancer Income & Invoice Tracker

Works in Excel and Google Sheets · instant download via Gumroad

FAQ

How do I calculate my freelance hourly rate?

Add your desired take-home income (grossed up for tax) to your yearly business expenses, then divide by the number of hours you can realistically bill in a year.

What percentage of my hours will be billable?

Many freelancers bill 50–70% of their working time; the rest goes to admin, marketing and finding clients.

Is the tax figure accurate for my country?

No. It is a simple set-aside percentage you choose. Tax rules vary by country and situation, so confirm with local guidance or an accountant.

Does the calculator store my income data?

No. It runs entirely in your browser and nothing is saved.

This calculator is for general education and planning only. It is not financial, tax or legal advice. Check important decisions with a qualified professional.