FreelanceKit.

Freelance Hourly Rate Calculator

Most freelancers set their rate by guessing what the market will bear — and undercharge for years. This calculator works backwards from the income you actually want, so you know the floor below which a project loses you money.

Billable hours per year1,150 hrs
Suggested day rate (7 billable hrs)$554
Your minimum hourly rate$79.13

Tip: this is your floor, not your price. Round up and add margin for scope creep and taxes.

How your minimum rate is calculated

The formula is simple: (target income + business expenses) ÷ billable hours per year. The part most people get wrong is the billable hours. A 40-hour week is not 40 billable hours — admin, marketing, proposals, invoicing, and learning typically eat 40–60% of a freelancer's time. That's why the default here is 25 billable hours per week, not 40.

Time off matters too. Employees get paid vacation; you don't. If you take six weeks off across vacation, holidays, and sick days, you only have 46 weeks to earn a full year of income, and your rate has to absorb that.

Why this number is a floor, not a price

The result tells you the rate at which you break even on your goals — charge less and you're funding your client's project with your own income. Your actual price should sit above it, with margin for scope creep, revisions, slow months, and the taxes you'll owe on every dollar.

If the number feels uncomfortably high compared to what you currently charge, that's the point. It usually means your current rate quietly assumes you never take a day off and have no business costs.

Frequently asked questions

How many billable hours per week is realistic for a freelancer?
Most full-time freelancers bill 20–30 hours per week. The rest goes to finding clients, writing proposals, admin, and invoicing. New freelancers often bill even fewer hours while building a client base.
Should my hourly rate include taxes?
The target income you enter should be your pre-tax income goal — the calculator treats it like a salary. Self-employed workers typically also owe self-employment tax on top of income tax, so leave room above the calculated floor or use our tax set-aside calculator to plan for it.
What counts as a business expense?
Software subscriptions, equipment, insurance, accounting fees, coworking space, professional development, and a portion of home office costs. Most solo freelancers land somewhere between $3,000 and $10,000 per year.
Is charging hourly the best pricing model?
Hourly is the easiest place to start, but many freelancers earn more with day rates, project pricing, or retainers once they can estimate work accurately. Even then, you need your hourly floor to sanity-check every quote.