Hourly Rate Calculator
Work out the hourly rate you need to charge to hit a target income, accounting for time off, expenses, and non-billable time.
Overview
Freelancers often set rates based on gut feeling rather than the math. This calculator works backward from a target annual income to the hourly rate that actually achieves it, accounting for time off and non-billable work.
- Accounts for weeks off, non-billable time, and business expenses
- Shows total billable hours per year as a sanity check
- Instant results as you adjust any input
How to use it
- 1Enter your target annual income and expenses
- 2Enter weeks off and working hours per week
- 3Adjust the billable percentage slider to reflect your reality
Tips
- — Most freelancers overestimate their billable percentage — tracking actual hours for a month (see the Time Tracker tool) gives a more honest number than guessing
Frequently asked questions
Why is billable percentage important?
Freelancers rarely bill 100% of their working hours — time goes to admin, marketing, unpaid proposals, and client communication. If your rate only accounts for billable hours at face value without adjusting for this, you'll fall short of your target income.
Should I include business expenses?
Yes, if you have them — software subscriptions, equipment, insurance, or any other cost of doing business should be covered by your rate, not just your target take-home income.