Freelance hourly rate calculator
Change the numbers on the left to match your situation. The calculator shows the lowest hourly rate that covers your income, your costs and your tax, and how it got there.
Minimum hourly rate
74.79
Day rate (8 hours)
598.32
How it adds up
- 60,000 take-home ÷ (1 − 25% tax)profit before tax
- 80,000.00
- + business expenses
- 6,000.00
- = revenue you need
- 86,000.00
- 25 hours × 46 working weeksbillable hours a year
- 1,150
- Revenue ÷ billable hoursrounded up to the cent
- 74.79
How to calculate your freelance hourly rate
Divide the revenue your business needs in a year by the hours you can actually bill in that year. The revenue is your take-home income grossed up for tax, plus your business expenses:
- Profit needed = take-home income ÷ (1 − tax set-aside %).
- Revenue needed = profit needed + business expenses.
- Billable hours = billable hours a week × (52 − weeks off).
- Minimum hourly rate = revenue needed ÷ billable hours. The day rate here is that rate × 8 hours.
Why billable hours matter most
A 40-hour week is not 40 billable hours. Finding clients, writing proposals, invoicing, admin and learning all take time no one pays for. Count only the hours you can put on an invoice. If you are not sure, track a few normal weeks before you set a rate.
What to put in the tax box
The tax set-aside is the share of your profit you keep back for income tax and, where it applies, self-employment or social security contributions. It depends on your country, your state and your income, so ask an accountant or check your tax authority's guidance. This is a minimum, not a market rate: what clients pay for your skills may be higher.