# Freelance Hourly Rate Calculator

> Find the minimum hourly and day rate you need from your target income, business costs, time off, billable hours and your own tax allowance.

Page: https://freecalculator.tech/tools/freelance-hourly-rate-calculator
Last reviewed: 2026-11-03

## Formula

Revenue needed = (take-home income + 12 × monthly costs) ÷ (1 − tax and benefits %). Billable hours = (52 − weeks off) × billable hours per week. Hourly rate = revenue ÷ billable hours.

- The tax allowance is applied to revenue after costs as a single percentage you choose; real tax systems are progressive and differ by country.
- Revenue needed = (take-home income + 12 × monthly costs) ÷ (1 − tax and benefits %). Billable hours = (52 − weeks off) × billable hours per week. Hourly rate = revenue ÷ billable hours.
- Inputs used: Target take-home income per year, Tax and benefits allowance, Business costs per month, Weeks not working per year, Billable hours per working week, Billable hours per day (for a day rate), Currency (symbol only, never converted).

## Inputs

- Target take-home income per year
- Tax and benefits allowance
- Business costs per month
- Weeks not working per year
- Billable hours per working week
- Billable hours per day (for a day rate)
- Currency (symbol only, never converted)

## Worked example: 60,000 take-home, 30% allowance, 500/month costs, 6 weeks off, 25 billable h/week

(60,000 + 6,000) ÷ 0.7 ≈ 94,285.71; ÷ 1,150 h ≈ 81.99 per hour.
1. Costs = 500 × 12 = 6,000.
2. Revenue = 66,000 ÷ 0.70 = 94,285.71.
3. Hours = 46 × 25 = 1,150.
4. Rate = 94,285.71 ÷ 1,150 ≈ 81.99.

## Common questions

### Why not divide salary by 2,080 hours?

Freelancers are not paid for admin, sales, holidays or sick days, and they pay their own costs and taxes. This calculator only counts the hours you can actually bill.

### What tax percentage should I enter?

Your own estimate for your country and situation. No rate is assumed; check with a local tax adviser.

### Does it include profit or savings?

Only if you add them to the target income or monthly costs.

### How do I use the Freelance Hourly Rate Calculator?

Enter the required values for Target take-home income per year, Tax and benefits allowance, Business costs per month, Weeks not working per year, Billable hours per working week, and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Freelance Hourly Rate Calculator use?

Revenue needed = (take-home income + 12 × monthly costs) ÷ (1 − tax and benefits %). Billable hours = (52 − weeks off) × billable hours per week. Hourly rate = revenue ÷ billable hours. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the Freelance Hourly Rate Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Uses one flat tax and benefits percentage, not real tax brackets.
- Assumes you sell every billable hour you plan for.
- Does not consider market rates for your field.
- An estimate built only from the figures you enter. It is not financial, tax, legal or employment advice, and real costs, taxes and returns vary.
- The result depends on the values you enter for this freelance hourly rate calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- U.S. Bureau of Labor Statistics — https://www.bls.gov/news.release/ecec.tn.htm

## Cite this page

- APA: Free Calculator. (2026, November 3). Freelance Hourly Rate Calculator. https://freecalculator.tech/tools/freelance-hourly-rate-calculator
- MLA: "Freelance Hourly Rate Calculator." Free Calculator, 3 Nov. 2026, https://freecalculator.tech/tools/freelance-hourly-rate-calculator.
- Link: Freelance Hourly Rate Calculator — Free Calculator, https://freecalculator.tech/tools/freelance-hourly-rate-calculator