Calculate your ideal freelance hourly rate based on desired income, billable hours, taxes, and business expenses.
1248 billable hours/year
| Annual Billable Hours | 1248 hrs |
| Gross Revenue Needed | $142,857 |
| With Expenses | $150,857 |
| With Profit Margin | $173,486 |
| Minimum Hourly Rate | $139/hr |
| Day Rate (8 hrs) | $1,112 |
| Weekly Rate | $3,614 |
| Monthly Rate | $14,457 |
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Gross Needed = Desired Income ÷ (1 − Tax Rate)
Total Revenue Needed = (Gross + Expenses) × (1 + Profit Margin)
Hourly Rate = Total Revenue ÷ Billable Hours
Start with your desired annual income, add taxes (30-40%) and business expenses, then divide by billable hours. Account for vacation, sick days, and non-billable time.
Most freelancers are only 50-70% billable. The rest goes to sales, admin, networking, and non-billable client work. Factor this into your rate calculation.
Yes — significantly higher. Your rate must cover employer taxes (7.65%), benefits, unpaid time off, business expenses, and profit. A 1.5-2x multiplier over your employee rate is common.
Raise rates annually (3-5%), when demand exceeds capacity, when you gain specialized skills, or when onboarding new clients. Existing clients can often absorb 10-15% annual increases.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.