Hourly Rate Calculator
Work out the minimum hourly rate you need to charge to hit your income goal — accounting for time off, expenses and tax.
Figures are shown in the currency you select. Currency is a display setting only — no exchange-rate conversion is applied.
What your result means
This tool gives you an instant, accurate hourly rate calculator so you can make pricing and planning decisions with real numbers instead of guesswork. Adjust any input and recalculate to explore different scenarios before you commit.
Formula
Minimum Rate = Gross Needed ÷ (Weeks Worked × Billable Hours per Week)
Recommended Rate = Minimum Rate + 15% buffer for admin & non-billable time
Worked example
A freelance designer wants to take home $40,000 a year, works 46 weeks a year (allowing for holidays), bills 25 hours a week, has $4,000 in annual expenses, and sets aside 20% for tax.
Billable Hours = 46 × 25 = 1,150
Minimum Rate = $55,000 ÷ 1,150 = $47.83/hr
Recommended Rate ≈ $55.00/hr (with buffer)
Common mistakes
- Using all 52 weeks and 40 hours a week as 'billable' — real freelance work includes admin, sales, holidays and sick time that isn't billable.
- Forgetting business expenses like software, insurance and equipment before dividing by hours.
- Setting a rate based only on what feels competitive, without checking whether it actually meets your income goal.
Frequently asked questions
Why is the recommended rate higher than the minimum?
The minimum rate assumes every single billable hour is actually booked and paid. In reality, freelancers lose time to admin, proposals, and gaps between projects — the 15% buffer builds in a safety margin.
How many hours a week should I count as billable?
Most freelancers can realistically bill 20–30 hours a week even when working full-time, once you account for admin, marketing and finding new clients. Use your own historical data if you have it.
Does this rate include tax I owe personally?
The tax/allowance percentage in this calculator is a placeholder for whatever you set aside for tax and benefits — adjust it to match your actual obligations, and consult a tax professional for your jurisdiction.