Setting your freelance hourly rate by guessing — or by copying what others charge — is how freelancers end up underpaid. This calculator works backwards from the income you actually want to take home. Enter your target yearly income, your realistic billable hours, and your business expenses, and it tells you the hourly rate you need to charge to hit that goal.
Why your rate is higher than you think
Freelancers don't bill 40 hours a week, 52 weeks a year. Holidays, sick days, admin, marketing, and gaps between projects mean your billable hours are far lower than your working hours — often 25–30 a week across 46–48 weeks. Because your expenses and unpaid time still have to be covered, your hourly rate needs to be higher than a salaried equivalent.
How to use the result
Treat the calculated rate as your floor, not your ceiling. It's the minimum you need to charge to hit your income goal. From there, adjust up for your experience, the value you deliver, rush jobs, and difficult clients. Reviewing it once a year keeps your pricing in line with your goals.
- Be honest about billable vs total hours
- Include ALL business expenses (software, equipment, taxes set aside)
- Round to a clean, confident number
- Raise it as your skills and demand grow
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add your target yearly income to your yearly business expenses, then divide by your realistic billable hours per year (working weeks × billable hours per week). The result is the minimum hourly rate you should charge.
How many billable hours can a freelancer realistically work?
Most freelancers bill 25–30 hours per week across about 46–48 weeks a year, once you account for holidays, admin, marketing, and downtime between projects.
Should I charge more than the calculated rate?
Yes — treat the calculated rate as your minimum. Adjust upward for experience, the value you deliver, rush work, and demand. The calculator gives you a floor to negotiate from.