Hourly Rate Calculator
Find the freelance or consulting rate you should charge — working back from your target income, expenses, billable hours, and taxes.
Rate you should charge
$115/hr
1,150 billable hours/yr · $132,000 gross needed
Most freelancers bill only 50–60% of their working hours — the rest goes to admin, sales, and unpaid work. Set billable hours realistically or you’ll under-charge.
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How to Use This Calculator
Enter your target annual take-home income.
Add business expenses and a tax set-aside %.
Set realistic billable hours and weeks off.
We calculate the hourly rate you need to charge.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Work back from your goal: gross needed = (target take-home ÷ (1 − tax %)) + expenses. Divide by your realistic billable hours per year to get your rate.
What percentage of my hours are actually billable?
Most freelancers bill only 50–60% of working hours — the rest goes to admin, sales, and unpaid tasks. Setting billable hours too high is the #1 reason people under-charge.
Should I charge more than my old salary’s hourly rate?
Yes — usually much more. As a freelancer you cover your own taxes, benefits, time off, software, and downtime. A common rule of thumb is 1.5–2× your former employee hourly rate.
How much should I set aside for taxes?
Self-employed workers should typically reserve 25–30% for federal, state, and self-employment tax. This calculator grosses up your rate so taxes don’t come out of your target income.
Should I switch to project pricing instead?
Once you know your hourly cost, you can price projects by estimated hours × rate, then quote a fixed fee. Value-based pricing can earn more, but your hourly floor protects you from under-quoting.
Why Use This Calculator
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Calculate the rate you need to charge
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Work back from a target take-home income
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Account for billable %, expenses, and tax
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Stop under-charging for your time
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"Simple, fast, and actually useful. I've bookmarked this for every campaign planning session."
Growth Lead, Fintech Startup