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Freelance Rate Calculator
Enter the take-home pay you want, your business costs and how many hours you can actually bill. You get the hourly and day rate that make it work.
| Billable hours per week | Hourly rate |
|---|---|
| 15 | $127.54 |
| 20 | $95.65 |
| 25 | $76.52 |
| 30 | $63.77 |
| 35 | $54.66 |
Example
To take home $60,000 with $8,000 of expenses and 25% tax, you need $88,000 of revenue. Over 1,150 billable hours a year, that is $76.52 an hour.
How the freelance rate calculator works
The calculator works backwards from your take-home pay. It first finds the profit needed before tax, then adds business expenses to get the revenue required: revenue = income / (1 − tax rate) + expenses.
That revenue is divided by your billable hours for the year, which is billable hours per week multiplied by weeks worked.
Billable hours are the key input. Time spent finding clients, on admin and on unpaid revisions is not billable. Many freelancers bill 50% to 70% of the hours they work.
Common questions
Why is the rate so much higher than an employee’s hourly pay?
An employer pays for holidays, sick days, equipment, pension contributions and the hours between tasks. A freelancer’s rate has to cover all of those from billable hours alone.
What tax rate should I use?
Use your expected average rate on profit, including income tax and social contributions. If you are unsure, an accountant or your tax authority’s calculator will give a better figure than a guess.
What counts as business expenses?
Software, equipment, insurance, accounting fees, workspace, travel and training. Include health insurance and retirement saving if an employer would normally have paid for them.