Freelance Rate Calculator
Calculate the minimum hourly rate you need to charge as a freelancer to hit your income goals, covering expenses and time off.
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hrs
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weeks
Minimum Hourly Rate
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Day Rate (8 hrs) —
Annual Billable Hours —
How to Use This Calculator
- Enter your Target Annual Income — the net pay you want after expenses.
- Enter how many Billable Hours per week you can realistically charge clients.
- Enter your estimated Annual Business Expenses.
- Enter how many Vacation Weeks you plan to take per year.
- The calculator shows your minimum hourly and day rate.
Formula
Annual Billable Hours = (52 − Vacation Weeks) × Billable Hours/Week
Hourly Rate = (Target Income + Expenses) / Annual Billable Hours
Day Rate = Hourly Rate × 8
Example
Target income $80,000, expenses $5,000, billing 30 hrs/week, 4 weeks vacation.
- Billable hours = (52 − 4) × 30 = 1,440 hrs/year
- Hourly Rate = ($80,000 + $5,000) / 1,440 = $59.03/hr
Frequently Asked Questions
- Start with your target take-home income, add business expenses and taxes, divide by billable hours per year. This gives your minimum viable rate — then consider market rates and your experience level.
- Most freelancers bill 20–30 hours per week out of a 40-hour workweek. The rest goes to admin, marketing, project management, and professional development.
- Project-based pricing can be more profitable if you work efficiently. Use your hourly rate to estimate project costs, then consider charging a flat project fee at a small premium.
- Include your estimated tax burden in "Annual Business Expenses." Self-employed individuals typically pay 25–35% of income in taxes, so factor that into your target income.