Freelancer Hourly Rate Calculator
Work out the hourly rate you need to charge to hit your income goal. Free to use, no signup required for occasional use.
What is the Freelancer Hourly Rate Calculator?
The Freelancer Hourly Rate Calculator helps independent contractors, consultants, and freelancers work backwards from a desired annual income to the hourly rate they actually need to charge clients. A common mistake new freelancers make is picking a rate based on what feels 'fair' or what competitors charge, without accounting for the fact that not every working hour is billable — time spent on invoicing, finding clients, replying to emails, and general admin doesn't generate income directly, yet it still eats into the working week. This tool takes your target annual income, how many days and hours a week you plan to work, the percentage of your time that's realistically non-billable, any annual business expenses (software, equipment, insurance, etc.), and how many weeks off you want to take, and calculates the hourly and daily rate required to actually hit that income goal. It's a practical starting point for setting rates on a new freelance business, adjusting rates after taking on more admin overhead, or sanity-checking whether a client's proposed rate will actually cover your goals once non-billable time and expenses are factored in.
How to use it
Start by entering your desired annual income — the amount you want to take home before tax. Next, enter how many days a week you plan to work and how many hours per workday, along with how many weeks off you want to take across the year for holidays or downtime. Enter the percentage of your working time that's typically non-billable, covering things like client communication, admin, marketing, and invoicing rather than direct paid work — most freelancers find this is somewhere between 20% and 40%. Finally, add any annual business expenses you need to cover, such as software subscriptions, equipment, or insurance. Click 'Calculate' and the tool will show your required hourly rate, an equivalent daily rate, and the monthly revenue you'd need to bring in to reach your target, based on your actual billable hours rather than your total working hours.
Frequently asked questions
Why isn't my hourly rate just my income divided by total work hours?
Because not every working hour is billable — time spent on admin, client communication, and finding new work reduces the hours you can actually invoice for, so the rate has to be higher to compensate.
What counts as a 'non-billable' percentage?
It's the share of your total working time spent on tasks you can't directly bill a client for, such as replying to emails, invoicing, marketing, or learning new skills. Most freelancers fall somewhere between 20% and 40%.
Should I include taxes in my desired annual income?
This calculator focuses on pre-tax target income and business expenses. If you want your rate to also cover taxes, add your estimated tax amount into the desired income or expenses field.
Does this account for time off during the year?
Yes, you can enter how many weeks off you plan to take, and the calculator adjusts your available working weeks accordingly so the rate still supports your income goal.