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.
In short
Find the minimum hourly and day rate you need from your target income, business costs, time off, billable hours and your own tax allowance.
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.
What this calculator does
Find the minimum hourly and day rate you need from your target income, business costs, time off, billable hours and your own tax allowance.
You enter target take-home income per year, tax and benefits allowance, business costs per month and weeks not working per year and a few other details, and the freelance hourly rate calculator shows the answer along with the working, so you can check it or try other numbers.
The page shows the formula, a numeric worked example, and the assumptions that affect this career calculation.
Inputs and what they mean
- Target take-home income per year
- — number value.
- Tax and benefits allowance
- — Your own estimate of tax, insurance and retirement as a share of revenue.
- Business costs per month
- — Software, equipment, insurance, workspace.
- Weeks not working per year
- — Holidays, sick days, training.
- Billable hours per working week
- — number value.
- Billable hours per day (for a day rate)
- — number value.
- Currency (symbol only, never converted)
- — choice value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
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).
Worked example
60,000 take-home, 30% allowance, 500/month costs, 6 weeks off, 25 billable h/week
- Costs = 500 × 12 = 6,000.
- Revenue = 66,000 ÷ 0.70 = 94,285.71.
- Hours = 46 × 25 = 1,150.
- Rate = 94,285.71 ÷ 1,150 ≈ 81.99.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
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.
Reference: U.S. Bureau of Labor Statistics
Last reviewed:
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.
Sources
Method based on U.S. Bureau of Labor Statistics.
Cite this page
Free Calculator. (2026, November 3). Freelance Hourly Rate Calculator. https://freecalculator.tech/tools/freelance-hourly-rate-calculator
"Freelance Hourly Rate Calculator." Free Calculator, 3 Nov. 2026, https://freecalculator.tech/tools/freelance-hourly-rate-calculator.
Freelance Hourly Rate Calculator — Free Calculator, https://freecalculator.tech/tools/freelance-hourly-rate-calculator
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