Free calculator

Hourly rate calculator for freelancers who need a number they can actually bill.

Plug in your income goal, business expenses, available weeks, and billable hours to find the hourly rate that covers the real cost of your practice.

Income-backed rate

Start from what you need to earn, not what the market says.

Expense coverage

Factor in real business costs so the rate actually sustains your practice.

Capacity-aware

Account for vacation, non-billable time, and the hours you can realistically sell.

Calculator inputs

Build your rate from what you need.

Income goal is take-home. Expenses are business costs on top of that.

Annual income goal (take-home)

$

Annual business expenses

$

Vacation / off weeks per year

Billable hours per week

This calculator does not include taxes. A common rule of thumb is to add 25% on top of your rate to cover self-employment and income tax. The “with tax buffer” number below uses that estimate.

What makes a rate sustainable

A rate is not just a number. It is the math behind a solvent practice.

Income goal, not market average

Start from what you need to earn. Market rates are a benchmark, not a ceiling or a floor.

Expenses built in, not forgotten

Software, insurance, hardware, coworking, accounting fees. If the rate does not cover them, the practice bleeds slowly.

Realistic capacity, not theoretical

Nobody bills 40 hours a week every week. Factor in vacation, admin, sick days, and the hours you actually sell.

FAQ

Questions people usually ask when setting their rate

How is this different from just dividing my salary by 2,080 hours?

Nobody bills 2,080 hours a year. This calculator uses your actual billable hours per week minus vacation to get a rate that reflects reality, not a theoretical maximum.

Should I include taxes in this rate?

The base rate does not include taxes. The calculator shows a 25% tax buffer estimate below the main rate. Adjust based on your actual tax bracket and structure.

What if clients push back on my rate?

The rate is what your practice needs to be sustainable. If a client cannot afford it, the engagement may not be viable. Discounting below cost is worse than walking away.

Best next pages

Once you know the rate, make sure the hours behind it actually reach the invoice.

These next steps are for people who want to protect the rate by tightening the workflow between tracked time and payment.