Free calculator
Hourly Rate Calculator
Find the hourly rate that pays you what you want after tax and costs, then test any rate before you quote it. 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
How it works
Your take-home is grossed up for the tax you set aside, then a year of business expenses is added. That is the revenue you need.
Spread that revenue over the hours a client actually pays for (your working hours times your billable share) and you have your minimum hourly rate. The rate card rounds it up to the next $5.
To test a rate, the calculator multiplies it 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 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, 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.
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 a job quote section, a rate card and a Start Here guide. $2.99, instant download.
Questions
How do I calculate my hourly rate as a freelancer?
Start from the take-home you want, add the tax you set aside and your business expenses, then divide by the hours clients actually pay for, not every hour you work.
What share of my hours is billable?
Many self-employed people bill 50% to 70% of their working hours; the rest goes to admin, sales and travel. Track a few weeks to find yours.
What tax set-aside rate should I use?
Ask your tax preparer. A set-aside rate is a savings habit, not a tax calculation.
Is this tax advice?
No. It is a planning estimate based on the numbers you enter.