Free tool
Freelancer Hourly Rate Calculator
What you want to keep for yourself after tax and expenses.
Software, insurance, workspace, accounting.
Share of revenue you set aside for tax. A planning guess, not a tax bill.
Vacation, sick time, and gaps between projects.
Sales and admin are usually not billable. Many people use 20–30 of a 40-hour week.
Used only to turn the hourly rate into a day rate.
Tired of calculating manually?
Track it automatically with WorkHours.
How this is calculated
Revenue needed is (income + expenses) ÷ (1 − tax set-aside). The hourly rate is that revenue divided by billable weeks times billable hours per week. The day rate is the hourly rate times the hours in a billed day.
Not every working hour is billable. Proposals, email, and bookkeeping usually are not. Many freelancers bill 20 to 30 hours of a 40-hour week. Dividing by 40 often sets the rate too low. The tax field is a planning set-aside, not a tax return.
Hourly rates for common income targets
Each row uses $5,000 in yearly expenses, a 25% tax set-aside, 5 weeks off, and 25 billable hours a week.
| Target income | Revenue to bill | Hourly rate | Day rate (8 h) |
|---|---|---|---|
| $40,000 | $60,000.00 | $51.06 | $408.48 |
| $60,000 | $86,666.67 | $73.76 | $590.08 |
| $80,000 | $113,333.33 | $96.45 | $771.60 |
| $100,000 | $140,000.00 | $119.15 | $953.20 |
| $120,000 | $166,666.67 | $141.84 | $1,134.72 |
How billable hours change the rate
The same $80,000 target. Fewer billable hours need a higher rate for the same income.
| Billable hours per week | Per year | Hourly rate |
|---|---|---|
| 15 | 705 | $160.76 |
| 20 | 940 | $120.57 |
| 25 | 1,175 | $96.45 |
| 30 | 1,410 | $80.38 |
| 35 | 1,645 | $68.90 |
Hourly, day rate, or project price
Hourly billing is simple when the scope changes often. A day rate suits on-site or retained work. For a fixed project price, estimate the hours, multiply by your hourly rate, and add a buffer for revisions. Tracking the hours on past projects makes the next estimate more accurate.
Checking a rate against the market
The calculator shows the rate your numbers need. Compare it with what clients in your field pay. If the market pays less, the levers are more billable hours, lower costs, or a narrower specialty that commands higher prices.
Common questions
How should a freelancer set an hourly rate?
Add the income you want to the cost of running the work, gross it up for the tax you set aside, then divide by the hours you can invoice. The result is a rate to charge clients, not a wage.
Why not divide by 40 hours a week?
Part of the week goes to finding work and running the business. Those hours are not on the invoice. Billing 25 hours of a 40-hour week is a common planning assumption.
Is this my take-home pay?
The hourly rate is the amount to charge so that, after expenses and the tax percent you entered, the target income is left. Your real tax can differ.
Should I charge a day rate or an hourly rate?
A day rate suits full days on one client’s work and is simpler to invoice. Hourly suits short or changing tasks. This calculator shows both from the same numbers.