Freelance hourly rate calculator
Work out your hourly and day rate from your target income, costs and billable time.
How this calculator works
This is arithmetic on your own inputs, not a comparison with other freelancers' rates.
- Divide your target take-home income by the share left after your tax set-aside, then add your yearly business costs.
- Add your chosen profit or buffer margin to that yearly amount.
- Multiply your working weeks by hours worked each week and your billable share to find your yearly billable hours.
- Divide the yearly amount including your margin by billable hours for your hourly rate. Multiply the unrounded hourly rate by eight for your day rate. Without the margin, you get your minimum hourly rate.
Why billable hours matter
Not every hour you work earns income. Admin, sales and unpaid work leave fewer hours to cover your yearly income and costs, so your billable share makes a difference to the rate you need. Read how to calculate your freelance hourly rate.
Frequently asked questions
What hourly rate should I charge as a freelancer?
Start with a rate that covers your take-home income, costs and tax set-aside, with room for a buffer. Then consider the scope, your skills and the value of the work when agreeing a price.
How many billable hours does a freelancer have?
It depends on your working schedule and how much time goes to paid client work rather than admin, sales or unpaid tasks. Use your own billable share instead of assuming every working hour can be invoiced.
Should I charge hourly or per project?
Hourly pricing can suit work with an evolving scope. A project price can suit clearly defined deliverables. Use your hourly estimate to check that either approach covers your time and costs.
Price a specific project? Try the AI Pricing Tool, which suggests a rate from the project's scope, your skills and experience.
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