Freelance Hourly Rate Calculator
Work backwards from the income you want. Add your yearly costs, tax rate and the hours you can really bill, and get the minimum hourly, day and weekly rate you should charge.
Why freelancers undercharge
The most common mistake is taking an old salary, dividing by 2,080 hours and calling that your rate. A freelancer pays their own taxes, software, equipment, insurance, retirement and holidays, and spends a big part of every week on work nobody pays for: sales calls, proposals, admin, invoicing and learning. If only 60–70% of your hours are billable, your hourly rate has to be much higher than an employee's to end up with the same money.
How this calculator works
- It adds the income you want to keep and your yearly business costs.
- It grosses that up for tax, so the money left after tax matches your target.
- It adds a buffer for slow months, late payers and surprises.
- It divides by your real billable hours: working weeks × hours per week × billable share.
With the default numbers – $50,000 take-home, $6,000 costs, 25% tax, 46 weeks, 40 hours and 65% billable – you need roughly $82,000 in revenue and about 1,196 billable hours, so your floor is around $69 an hour, or about $550 a day.
Day rate, project price or hourly?
Your hourly floor is the minimum, not the price you must quote. Many freelancers quote by the day or by the project, which rewards speed and experience. Use the hourly number as a sanity check: estimate the hours a project really needs, multiply by your rate, then add a margin for revisions and unknowns.
Protect your rate from scope creep
A great rate means nothing if the project quietly grows. "Can you just add one more page?" or "one more round of changes" turns a $69-an-hour job into a $35-an-hour job without anyone noticing. Write down what is included before you start: deliverables, number of revision rounds and timeline. When the client asks for more, price the change and get a quick signed yes before doing the work. That single habit protects your effective hourly rate more than any negotiation trick.
Review your rate every year
Raise your rate as your skills, demand and costs grow. Tell existing clients in advance, give them a date, and put the new rate in writing. Clients respect clear, professional notice far more than surprise increases.
Numbers are estimates for planning only and not tax advice.
Keep your rate safe when the project grows.
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Need numbers for a pitch or report? See our scope creep & late payment statistics.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your desired income and business costs, adjust for tax, add a buffer, and divide by the number of hours you can actually bill in a year.
How many billable hours does a freelancer have?
Many freelancers bill 50% to 70% of their working hours. The rest goes to sales, admin and learning.
Should I charge hourly or per project?
Both work. Use your hourly floor to check that any project or day price covers your costs and target income.
How do I stop scope creep from lowering my rate?
Define what is included up front, and get every extra request priced and approved in writing before you start it.
Is this calculator free?
Yes. It runs entirely in your browser and stores nothing.