Calculators / Hourly rate
Freelance Hourly Rate Calculator
The hourly rate you need based on your income goal, expenses, taxes and the hours you can actually bill.
It's added as a line item in the estimate maker.
How it's calculated
Hourly rate = (income goal + business expenses) ÷ (1 − tax rate) ÷ billable hours per year.
Billable hours are the hours a client pays for — not the hours you work. Finding clients, writing estimates, admin, learning and time off all eat into the week. Most freelancers bill well under 40 hours a week, so a rate built on a 40-hour week usually comes up short.
Frequently asked questions
Why is the rate higher than I expected?
Because expenses, taxes and unbilled time are spread over fewer hours than a full-time job. A rate based only on a salary figure tends to be too low.
Should I charge hourly or per project?
Many clients prefer a fixed project price. You can still use your hourly rate to price the project: estimated hours × rate, plus a buffer.