Freelance Hourly Rate Calculator
Enter your desired income, business expenses, time off, and billable percentage to calculate the hourly rate you need to charge to actually hit your income goal.
$76.39/hr
based on 1,152 billable hours a year
The billable percentage is the number most freelancers get wrong, working 40 hours a week doesn't mean 40 billable hours. Time spent on invoicing, proposals, client communication, and finding the next project all count against your working hours but don't generate revenue, which is exactly why this rate comes out higher than a naive "income divided by hours worked" calculation would.
Frequently asked questions
Why is billable percentage the field that changes the answer the most?+
Working 40 hours a week doesn't mean 40 billable hours. Invoicing, proposals, client communication, and finding the next project all take real time but generate no direct revenue. Most freelancers underestimate how much of their week goes to this, which is exactly why a naive "income divided by hours worked" calculation comes out too low.
Should I include health insurance and retirement in business expenses?+
Yes, if you're covering those costs yourself as a freelancer (rather than through an employer), they're a real cost of doing business and belong in the expenses field, along with software, equipment, and any other business overhead.
This rate seems high compared to what I'd earn as an employee doing similar work, is that normal?+
Yes, and it's expected. An employer also covers payroll taxes, benefits, paid time off, and unbillable time (meetings, training) that a freelance rate has to cover out of the hourly rate itself, since there's no employer absorbing those costs separately.