Freelancer Hourly Rate Calculator — Find the Right Price for Your Work

Setting your freelance rate can feel overwhelming. Charge too little, and you’ll struggle to cover expenses. Charge too much without justification, and clients may look elsewhere. The Freelancer Hourly Rate Calculator helps you find a balanced, professional hourly rate that reflects your income goals, business costs, and realistic working hours.

Why Every Freelancer Needs This Calculator

Freelancing isn’t just about doing great work — it’s about running a business. Many freelancers forget to factor in:

• Taxes (income tax, self-employment tax, etc.)
  
• Expenses (software, tools, insurance, workspace)
  
• Unpaid time (marketing, admin, sick days, holidays)
  

This calculator ensures you don’t undercharge, giving you a fair and sustainable rate.

What Information You’ll Need

Here’s what you’ll enter before calculating your rate:

• Country – Gives context for taxes and cost of living.
  
• Desired Annual Salary (USD) – The amount of money you want to personally take home.
  
• Monthly Business Expenses (USD) – Software subscriptions, coworking space, insurance, equipment, etc.
  
• Work Hours Per Week – How many total hours you expect to work, not all of which will be billable.
  
• Work Weeks Per Year – Typically between 42–48 after accounting for vacations.
  
• Tax Rate (%) – Your estimated overall tax percentage.
  

The Math Behind Your Rate

The calculator uses a straightforward process:

1. Annual Expenses = Monthly Business Expenses × 12
   
2. Revenue Target Before Taxes = (Desired Salary + Annual Expenses) ÷ (1 − Tax Rate)
   
3. Billable Hours Per Year = Work Hours Per Week × Work Weeks Per Year × Billable Utilization % (often ~60%)
   
4. Hourly Rate = Revenue Target ÷ Billable Hours
   

This formula ensures your final hourly rate isn’t just about covering bills — it prepares you for taxes, downtime, and growth.

Example Walkthrough

Let’s say you want to earn $70,000 per year. Your monthly expenses are $1,000, you work 40 hours per week, take 6 weeks off per year, and expect to bill 60% of your working hours. You estimate a 30% tax rate.

1. Annual Expenses = $1,000 × 12 = $12,000
   
2. Revenue Target = (70,000 + 12,000) ÷ (1 − 0.30) = $117,143
   
3. Billable Hours = 40 × 46 × 0.6 = 1,104 hours
   
4. Hourly Rate = 117,143 ÷ 1,104 ≈ $106/hour
   

So, to comfortably reach your goals, you’d charge around $105–$110 per hour.

FAQs