Freelance Hourly Rate Calculator
A freelance rate has to cover more than a salary: business expenses, taxes, time off and all the hours that cannot be billed. Work backward from the income you want to the rate you need.
Enter your figures below. Results update as you type.
Hourly rate to charge$114.78
- Day rate (8 hours)
- $918.26
- Revenue needed per year
- $132,000.00
- Revenue needed per month
- $11,000.00
- Billable hours per year
- 1,150
How the Freelance Hourly Rate calculation works
Hourly rate = (target income / (1 - tax %) + expenses) / billable hours per year
To take home $90,000 with $12,000 of expenses and 25% set aside for tax, you need $132,000 of revenue. Billing 25 hours a week for 46 weeks is 1,150 hours, so the rate is $114.78 an hour, or about $918 a day.
Frequently asked questions
How do I work out my freelance hourly rate?
Add your target income, taxes and business expenses to get the revenue you need, then divide by the hours you can realistically bill in a year. Most freelancers bill 50% to 70% of their working hours.
Why is a freelance rate higher than an employee's hourly pay?
A freelancer pays for their own taxes, insurance, equipment, holidays and unbilled time. A rule of thumb is that a freelance rate should be at least 1.5 to 2 times the equivalent employee wage.
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