Freelance Hourly Rate Calculator
Find the hourly rate you need to charge to hit your income goal after costs, tax and time off.
Why freelancers need a higher rate than employees
An employee's hourly wage covers only hours worked. A freelancer also has to pay for tax, software, equipment, insurance, holidays and unpaid time spent on admin and finding clients. That is why you can only bill part of your working week, and why your rate must be higher than a salaried equivalent.
How the rate is worked out
Revenue needed = (take-home goal + business costs) ÷ (1 − tax rate). Billable hours = hours per week × weeks worked. Divide revenue by hours to get the minimum rate. Price above it to leave room for slow months.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Raise your rate before you feel busy, not after.
- Charge for scoping and revisions, not just production.
- Review your rate every 6–12 months.
Learn more
Frequently asked questions
How many hours can I really bill?
Most freelancers bill 20–30 hours a week. The rest goes to admin, marketing and clients.
What tax rate should I use?
It depends on your country and income. Ask a local accountant. 20–30% is a common set-aside.
Money guides for this topic
All guides →Side Hustle Math: How Much Can You Really Earn?
Honest numbers for common money-making ideas: selling products, YouTube, freelancing and overtime, with break-even math.
Read guide →Self-Employed Taxes Made Simple
How self-employment tax works, why you set money aside from every payment, and how to estimate your yearly bill.
Read guide →How to Price Freelance Work (Without Undercharging)
Work backwards from the income you want, add tax and costs, and divide by realistic billable hours to find your rate.
Read guide →Related calculators
Profit Margin & Markup Calculator
Calculate profit margin and markup from cost and selling price, or find the price for a target margin.
Open calculator →Break-Even Calculator
Find how many sales you need to cover fixed costs and start making a profit.
Open calculator →Seller Profit Calculator (Etsy, eBay, Amazon)
Estimate profit per sale after marketplace fees, shipping and item cost.
Open calculator →Results are estimates and not financial advice.