💼Freelance Hourly Rate Calculator

Calculate the minimum hourly rate needed to meet your income goals.

Target take-home ($/yr)

Tax rate (%)

Billable hours/week

Weeks worked/year

Annual expenses ($)

About Freelance Hourly Rate Calculator

Calculate the hourly billing rate you need to charge as a freelancer or contractor to meet your target annual income. Input your desired net income, estimated tax rate, number of billable hours per week, and weeks worked per year to get the minimum hourly rate that covers your take-home pay, taxes, and business expenses.

How to Use Freelance Hourly Rate Calculator

1
Enter your income target
Input your desired annual take-home income.
2
Add costs and tax
Enter your estimated tax rate, annual business expenses, and billable hours per week.
3
See your minimum rate
The calculator shows the hourly rate you must charge to meet your target income.

Common Use Cases

Setting a freelance day rate for client proposals
Comparing freelance income potential vs salaried employment
Calculating the minimum viable rate before taking on a project
Planning income and pricing as a new independent contractor

Frequently Asked Questions

Why should my freelance rate be higher than a salaried equivalent?

As a freelancer you pay self-employment tax (in the US, ~15.3%), cover your own benefits (health, retirement), pay for software and equipment, and have unpaid hours for admin, marketing, and gaps between projects. These factors significantly increase the required rate.

What is a billable utilisation rate?

Utilisation rate is the percentage of your working hours that are actually billed to clients. A typical freelancer bills 60-75% of their time — the rest is admin, business development, and training. Enter your realistic utilisation to get an accurate rate.