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Freelance Hourly Rate Calculator

The minimum hourly rate to hit your target income after expenses, taxes and unbillable time, plus a project price.

About this tool

Freelance Hourly Rate Calculator is a free, in-browser tool that finds the minimum you must bill per hour to actually reach a target annual income. Unlike salary ÷ 2080, it accounts for the realities of self-employment: business expenses, a tax set-aside, limited working weeks, and the fact that only part of your week is billable client work.

The rate is (target income + expenses) ÷ (1 − tax buffer) ÷ (weeks × hours × billable share). Dividing by (1 − tax) grosses revenue up so that after setting aside your tax percentage you still net the target; dividing by billable hours spreads that revenue over only the hours you can invoice. The tool also shows an 8-hour day rate, your billable hours per year, the total revenue you need, and a project price (rate × project hours × (1 + contingency)).

Use it before quoting: at 46 working weeks, 60% billable and a 25% tax buffer, a 70,000 target with 8,000 of expenses needs a far higher rate than most freelancers guess. All inputs stay in your browser — nothing is uploaded.

Frequently asked questions

Why divide by the billable share?
Admin, marketing, and finding clients consume real hours you cannot invoice — if only 60% of a 40-hour week is billable, your revenue must come from those 24 hours, which pushes the required rate up accordingly.
What is the tax buffer and how does it work?
It is the share of revenue you set aside for income tax and self-employment contributions; the formula divides by (1 − buffer) so that after removing that share you still clear your target income plus expenses.
How is the project price calculated?
Project price = hourly rate × estimated project hours × (1 + contingency%); the contingency pads for scope creep and underestimation, a standard freelancing practice.
Is the day rate always 8 hours?
Yes, the day-rate tile is simply the computed hourly rate × 8 as a quoting convenience; multiply the hourly rate yourself for other day lengths.

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