Freelance Hourly Rate Calculator
Turn a target annual income into the hourly rate you need to charge, based on your billable hours and business expenses.
- Billable hours per year
- 1,440
- Required hourly rate
- $59.03
This is the minimum rate that covers your income goal plus expenses across the hours you can actually bill. It does not set aside taxes — use the 1099 tax calculator for that.
How to set your freelance rate
Your hourly rate has to cover more than your salary. Start with the income you want to take home, add the expenses your business pays before you do, then divide by the hours you can actually bill — not the hours you work. Admin, sales, and downtime are unpaid, so billable hours are always lower than total hours.
Targeting $80,000 plus $5,000 of expenses across 30 billable hours a week for 48 weeks is 1,440 billable hours, so you need about $59 per hour. Bill fewer hours or take more time off and the required rate climbs.
Remember to budget for tax separately — estimate it with the 1099 tax calculator or browse all finance tools.
FAQ
How do I calculate my freelance hourly rate?▾
Add your target income to your annual business expenses, then divide by the number of hours you can actually bill in a year (billable hours per week × working weeks). Wanting $80,000 plus $5,000 expenses across 30 billable hours over 48 weeks works out to about $59 per hour.
What are billable hours?▾
Billable hours are the hours you can charge a client for. Most freelancers bill far fewer hours than they work, because admin, sales, marketing, and breaks are not billable. Using 25–30 billable hours from a 40-hour week is realistic for many people.
Should I include taxes in my rate?▾
This calculator targets your take-home income goal before tax. As a freelancer you also owe self-employment and income tax, so set your target income high enough to cover them — or estimate them with the 1099 tax calculator and add that to your expenses.
Why are my working weeks less than 52?▾
Few freelancers bill every week of the year. Subtract vacation, holidays, sick days, and slow periods. Using 46–48 weeks instead of 52 gives a rate that still hits your income goal when you take time off.
What expenses should I include?▾
Software subscriptions, hardware, insurance, accounting, coworking or office costs, and professional development. These come out of revenue before you pay yourself, so folding them into the rate keeps your take-home on target.