Freelance Hourly Rate Calculator

How it is calculated

The tool turns a yearly goal into a rate per billable hour: annual hours = billable hours per week × weeks per year, then hourly rate = (target income + expenses) ÷ annual hours. It also shows the annual hours and your target income per month, target ÷ 12, which does not include expenses. Only billable hours count, not all the hours you work, so use the hours you realistically invoice after admin, marketing and gaps between projects. Weeks per year should be the weeks you actually work after holidays and sick time. Billable hours per week must be above 0 and at most 168, weeks above 0 and at most 53, and income and expenses cannot be negative; outside those limits there is no result. Every field must be filled in, so enter 0 if you have no expenses. The tool does not add income tax, social contributions or a profit buffer; if your target is after tax, raise it before entering.

Common mistakes

• Entering total working hours as billable hours. If you work 40 hours but only invoice 25, use 25; otherwise the rate comes out too low and you will not reach the income goal.
• Using 52 weeks. Holidays, sick days and gaps between clients mean most freelancers work fewer weeks than that. More than 53 weeks gives no result.
• Entering a monthly expense total in the yearly box. Both the target income and the expenses are yearly amounts here.
• Treating the target as before-tax when it is take-home. The tool does not deduct tax or contributions, so a take-home goal needs a gross-up before you enter it.
• Leaving the expenses box empty when there are none. It must contain 0, or no result is shown.