Freelance Hourly Rate Calculator
Work out the hourly rate you must charge to hit your income goal after expenses, based on real billable hours.
How it works
Hourly rate = (target income + expenses) ÷ (billable hours per week × weeks)
Your rate has to cover both the income you want to keep and the expenses of running the business, spread over only the hours clients actually pay for. The trap is confusing billable hours with hours worked: admin, sales, marketing and downtime are real work but not billable, so realistic billable hours are often only 50–70% of a full week. Dividing by fewer billable hours pushes the required rate up — which is exactly the point.
Worked example
To net $80,000 with $6,000 of expenses over 1,200 billable hours (25 hours × 48 weeks), you must charge (80,000 + 6,000) ÷ 1,200 ≈ $71.67 per hour.
Frequently asked questions
What are billable vs worked hours?
Billable hours are the ones clients actually pay for. Much of a freelancer’s week — admin, sales, marketing, invoicing — is not billable, so realistic billable hours are often only 50–70% of hours worked.
Why is my rate higher than an employee wage?
Freelancers cover their own taxes, health insurance, retirement, equipment, downtime and unpaid time off. Your rate has to fund all of it, which is why it should exceed the equivalent salaried hourly wage.
Should I bill hourly or by project?
Use this hourly rate as your floor either way. Project pricing based on value often earns more, but knowing your true hourly cost keeps you from underpricing a fixed bid.
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Educational estimate, not financial advice.