Treat this as your floor
The result is the minimum you need. Experience, specialism and demand can justify more.
Freelance Hourly Rate Calculator
Work out what you really need to charge to earn the income you want. The calculator accounts for taxes, business expenses, holidays and the hours you cannot bill, which most freelancers forget.
- 100% free
- No sign-up
- Runs in your browser
Software, equipment, internet, workspace, insurance.
Holidays, public holidays and sick days.
Time spent on admin, sales and learning is unbilled.
Minimum hourly rate0
Day rate (8 hours)0
Monthly revenue target0
Billable hours per year0
How to use
How to use the Freelance Hourly Rate Calculator
- Enter the yearly income you want to take home.
- Add your yearly business expenses and an approximate tax rate.
- Enter your time off and normal working hours.
- Set your billable share: how much of your working time is paid client work.
- Read your minimum hourly and day rate.
Private by design. Everything happens in your browser. Nothing you type or upload is sent to our servers, stored or shared.
About this tool
Why freelance rates need to be higher than salaries
A salaried employee is paid for holidays, sick days and time spent in meetings. A freelancer is not. On top of that, freelancers pay for their own equipment, software and taxes, and spend a good part of the week finding clients and doing admin.
That is why dividing a salary by 2,080 hours gives a rate that is far too low. If only 65% of your working hours are billable and you take six weeks off, you may have fewer than 1,200 billable hours a year. This calculator builds your rate from those real numbers.
Good to know
Setting your freelance rate
Be honest about billable time
Most freelancers bill 50% to 70% of their working hours.
Consider project pricing
Once you know your hourly rate, quote fixed project prices based on realistic hours.
Review every year
Expenses and taxes change. Revisit your rate at least annually.
FAQ
Freelance Hourly Rate Calculator FAQs
How many billable hours does a freelancer have per year?
Often between 1,000 and 1,400, once holidays, admin, sales and learning time are taken out.
Should I charge hourly or per project?
Hourly suits ongoing or unclear work. Project pricing suits defined scopes and rewards working efficiently.
Does this include tax?
Yes. The rate is grossed up so that you keep your target income after the tax rate you enter.
What profit buffer should I use?
Ten to twenty percent helps cover quiet months, late payers and reinvestment in your business.
Need a custom billing or business system?
iCreativez builds custom software, portals and mobile apps that automate invoicing, payroll and reporting for your team.