Free calculator
Freelance Hourly Rate Calculator
Work out the hourly rate a freelance business needs, see what the rate you charge now really pays per hour worked, and turn your rate into a project quote. Free, no sign-up.
- Revenue you need$0
- Hours you work per year0
- At the rate you are checking, you keep$0
- Per hour you actually work$0
- Project labor at your rate card$0
- Costs with markup$0
- Project quote$0
The rate you need if you bill more of your week
- 50% of your hours billed$0
- 60% of your hours billed$0
- 70% of your hours billed$0
- 80% of your hours billed$0
How it works
The gap between the rate a freelancer charges and the pay they keep comes from two places: the hours no client pays for (pitching, email, invoicing, learning) and the tax and costs that come out before anything is yours.
This calculator grosses your take-home up for the tax share you set aside, adds a year of business expenses, and spreads that revenue over the hours a client actually pays for: your working hours times your billable share. That is your minimum hourly rate; the rate card rounds it up to the next $5.
To test a rate, it multiplies the rate by your billable hours, takes out expenses and your tax set-aside on any profit, and divides what is left by every hour you work. A project quote is its billable hours at your rate-card rate, plus any project costs with your markup.
A worked example
A $60,000 take-home with a 25% tax set-aside and $6,000 of expenses needs $86,000 of revenue. At 48 weeks of 40 hours with 60% billable, that is 1,152 billable hours out of 1,920 worked, so the minimum rate is $74.65 (rate card $75). Charging $40 an hour brings in $46,080 and leaves $30,060 after expenses and tax: $15.66 for every hour worked, $29,940 short of the goal. A 12-hour project at $75 is $900 of labor; $150 of project costs with a 15% markup adds $172.50, for a $1,072.50 quote. Billing 80% of your hours instead of 60% would bring the minimum rate down to $55.99.
Keep it, change it, quote with it
The Hourly Rate Quick Calculator is this calculator as a one-tab Excel and Google Sheets workbook, with the same quick quote, the billable-share table, a rate card and a Start Here guide. $2.99, instant download.
Questions
How do I calculate my freelance hourly rate?
Start from the take-home you want, add the tax you set aside and a year of business expenses, then divide by the hours clients actually pay for, not every hour you work. With the example numbers that is $86,000 over 1,152 billable hours, or $74.65 an hour.
Why is my rate so much higher than my old salary divided by hours?
A salary comes with paid time off, no unbilled admin and an employer who covers the business costs. As a freelancer you pay those from your rate, and only the billable share of your week earns it.
What billable share should I use?
Track a few weeks of your own time and divide the hours a client paid for by all hours worked. The example's 60% is a starting point, not a benchmark. The table under the results shows the rate you would need at 50%, 60%, 70% and 80% billed.
How do I turn the rate into a project price?
Estimate the billable hours the project takes, multiply by your rate-card rate, and add any costs you pass on with your markup. The example's 12-hour project with $150 of costs quotes at $1,072.50.
What tax set-aside rate should I use?
Ask your tax preparer. A set-aside rate is a savings habit you choose, not a tax calculation, and this calculator does not tell you which rate to use.
Is this tax or financial advice?
No. It is a planning estimate based on the numbers you enter.