Freelance Hourly Rate Calculator

Estimate what to charge per billable hour to cover your yearly income goal and business costs.

How to calculate

Hourly rate = (annual income goal + yearly business costs) ÷ (billable hours per week × billable weeks per year). Example: ($80,000 + $10,000) ÷ (25 × 46) = $78.26 per hour. Only include hours you can charge clients for. Taxes are not added automatically. Exclude weeks when you cannot bill clients.

Billable hours are not all working hours

If you work 40 hours a week but spend 15 on unpaid tasks, enter 25 billable hours, not 40. With an $80,000 annual income goal, $10,000 in yearly business costs and 46 billable weeks, that gives $78.26 per billable hour. Entering 40 hours instead would show only $48.91 and could leave your income goal uncovered.

Frequently asked questions

Is this calculator free?

Yes. There is no registration, payment, or data upload. Calculations run in your browser.

Does this rate include taxes?

No. Add any taxes you need to cover to your income goal before calculating your rate.

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