The Hourly Rate Calculator For Freelancers works backwards from the annual income you need, adds expenses and profit margin, divides by your billable hours, and gives you both an hourly and a project-day rate. Use it before quoting a new client.
Calculator
Formula used
Hourly = (salary + expenses + profit) ÷ billable hours/yr · Day rate = hourly × billable hours/day
How to use the Hourly Rate Calculator For Freelancers
- Type the annual take-home you want.
- Add your business expenses and the profit margin you want to keep.
- Set the weeks you will work and the hours per week that you can actually bill.
- Read the hourly, day and project rates.
About this tool
The Hourly Rate Calculator For Freelancers is built for speed and accuracy: every calculation runs in your browser, so your data never leaves your device and the result updates as you type. It works equally well on a phone, a tablet or a desktop, and it is free to use as many times as you like.
Common use cases
- Setting a rate for a new freelance contract.
- Comparing the cost of a full-time role with self-employment.
- Negotiating a retainer or package deal.
- Auditing whether your current rate covers the bills.
Tips for the best result
- Use the latest figures you have - even a small change in rate or term can shift the outcome by hundreds.
- For annual figures, divide by 12 to get a monthly number you can compare with the result.
- Bookmark this page and revisit the calculation as the inputs change.
Frequently asked questions
What profit margin should a freelancer use?
15-25% is a healthy band. The lower end keeps you competitive, the higher end covers slow months, sick days and a buffer for taxes.
How many billable hours are realistic?
60-70% of a 40-hour week is realistic for an established freelancer. The first year is usually closer to 40-50% as you build a pipeline.
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