Calculate a freelance hourly rate
Work out the hourly rate to charge from your target income, business expenses, time off, and realistic billable hours per week.
Billable percentage accounts for time spent on admin, marketing, and other unpaid work, since not every working hour gets invoiced to a client.
The annual take-home you want, plus any business costs it needs to cover.
Vacation, sick days, and holidays, plus how many hours a week you actually work.
How much of that time is actually billable to clients, after admin, marketing, and other unpaid work.
Frequently asked
Why isn't billable percentage 100%?
Freelancers rarely bill every working hour. Time goes to admin, invoicing, marketing, proposals, and unpaid client communication. A realistic billable percentage (often 60 to 80%) keeps the rate honest.
Should business expenses include software and equipment?
Yes. Anything you pay for to run the business (software subscriptions, equipment, insurance, a portion of home office costs) belongs in the expenses field so it's covered by the rate.
Does this account for taxes?
No. The desired income figure should be whatever you want to end up with. If you want the rate to also cover self-employment or income tax, add an estimate of that tax into the expenses field.
Is this financial or tax advice?
No. This is a general estimate for planning purposes only, not financial, investment, or tax advice. Rates and figures can change. Confirm current numbers with a qualified professional before making decisions.