Hourly Rate Calculator
Calculate the hourly rate to charge as a freelancer, based on your income goal and expenses.
Software, insurance, equipment, and other costs of running your business.
Your own estimate for taxes and savings, added on top — not a fixed rate, since this varies by country and situation.
52 weeks minus your vacation, holidays, and sick time.
Hours you can actually bill clients for — typically less than your total working hours, since admin, marketing, and unpaid time take up the rest.
Enter your values to calculate your result.
Formula
Hourly Rate = (Desired Income + Expenses + Tax Set-Aside) ÷ (Working Weeks × Billable Hours per Week)
Tax Set-Aside is your Desired Annual Income multiplied by your own Tax/Savings percentage — a buffer you choose, not a fixed tax rate. Billable Hours per Year is Working Weeks × Billable Hours per Week. Dividing your total annual revenue need by that gives the rate you need to charge for every billable hour.
Example
Wanting $60,000 net with $5,000 in expenses and a 25% tax/savings set-aside means you need about $80,000 in revenue. At 30 billable hours a week for 48 weeks (1,440 billable hours a year), that works out to about $55.56 per hour.
Frequently Asked Questions
Why is my hourly rate so much higher than income ÷ total hours?
Because only a fraction of your working time is actually billable — the rest goes to admin, marketing, proposals, and unpaid overhead. Dividing your income by every hour you work (rather than only billable hours) badly understates the rate you actually need to charge.
What should I use for the Tax / Savings Set-Aside percentage?
That depends entirely on your country, tax bracket, and how much you want to save — this calculator doesn't assume a fixed rate for you. A common starting point many freelancers use is 25–30%, but check your own situation or a tax professional for an accurate figure.