Freelance Hourly Rate Calculator
Work backwards from the income you want to the rate you need to charge.
Method
How it works
The target take-home income is grossed up using the entered tax and contribution rate, then annual business expenses are added to find required revenue.
Billable hours equal weekly billable hours multiplied by working weeks. Required revenue divided by those hours gives the hourly rate; the day rate simply multiplies it by eight.
Common questions
Frequently asked questions
Why should billable hours be lower than total working hours?
Administration, sales, holidays and unpaid tasks may reduce the hours that can actually be invoiced; the calculator uses whatever billable figure the user enters.
How does the tax-rate input affect the required rate?
The target take-home income is divided by one minus the tax rate, increasing the pre-tax revenue requirement.
Does the hourly rate include business expenses?
Yes. Entered annual expenses are added before the required revenue is divided by billable hours.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.