Menu
Home / Freelance Hourly Rate Calculator

Freelance Hourly Rate Calculator

Find the lowest hourly rate that reaches your take-home goal after expenses, tax and time off, based on the hours you can really bill.

Calculated on your device
$
What you want left after business costs and income tax.
Enter a number, for example 1250 or 19.99.
$
Software, equipment, insurance, workspace, accountant and so on.
Enter a number, for example 1250 or 19.99.
%
Your overall effective rate, including income tax and social contributions where you live. Rules vary by country, so treat this as an estimate.
Enter a number, for example 1250 or 19.99.
weeks
52 minus holidays, sick days and public holidays.
Enter a number, for example 1250 or 19.99.
hours
Hours you can charge to clients, not admin or finding work.
Enter a number, for example 1250 or 19.99.
%
Extra for quiet months and late payers. Enter 0 for none.
Enter a number, for example 1250 or 19.99.

How to use the freelance rate calculator

  • Enter the take-home pay you want each year: what's left for you to live on.
  • Add yearly business expenses and an estimated tax rate. Use your overall effective rate, not your top bracket.
  • Set working weeks and honest billable hours per week, then an optional buffer.

The formula, step by step

Pre-tax profit = Take-home ÷ (1 − Tax rate)
Revenue needed = (Pre-tax profit + Expenses) × (1 + Buffer)
Billable hours = Working weeks × Billable hours per week
Hourly rate = Revenue needed ÷ Billable hours

Start with what you want to keep, add back the tax, add your costs and a cushion, then spread the total across the hours you can actually bill.

Worked example

A freelance designer wants to take home 50,000 a year, has 6,000 of costs, expects a 25% tax rate, works 46 weeks at 25 billable hours and wants a 10% buffer.

50,000 ÷ 0.75 = 66,666.67 pre-tax. (66,666.67 + 6,000) × 1.10 = 79,933.33 revenue. 46 × 25 = 1,150 hours. 79,933.33 ÷ 1,150 = 69.51 per hour.

Billable hours make the biggest difference

Dividing a salary by 40 hours × 52 weeks badly underprices freelance work. Finding clients, admin, invoicing and holidays all take time you can't bill. Moving from 40 to 25 billable hours raises the rate you need by 60%, which is why freelance rates that look high are often just realistic.

Turning the minimum into your price

  • Treat the result as a floor, then check what people with similar skills charge in your market.
  • For fixed-price projects, estimate the hours generously and multiply by your rate.
  • Review your numbers every year as costs, taxes and demand change.

Frequently asked questions

What tax rate should I enter?

Your best estimate of total tax and social contributions as a share of profit, wherever you're based. Systems differ a lot between countries and change over time, so check with your tax authority or an accountant. This calculator uses one flat rate for planning.

Should I include retirement savings?

Yes. Add them to your take-home target or your expenses. Employees often get pension contributions from an employer; freelancers fund their own.

How many billable hours are realistic?

It varies widely. Many freelancers bill well under 40 hours a week once sales and admin are counted. Track your time for a few weeks and use your real figure.

Formulas checked 29 October 2026. This calculator is for planning and education, not financial, tax or legal advice.