Calculate your freelance hourly rate using taxes, expenses, and realistic billable hours.
This does not change calculations. Set your effective tax rate.
Your net target (exclude VAT/sales tax)
Software, equipment, insurance, accounting, etc.
Use your effective average tax rate (not marginal bracket). Exclude VAT/sales tax.
Billable time after admin, sales, and marketing
Account for holidays, sick days, and unbillable periods
Billable hours per week: 22.0 hours
Total billable hours per year: 1012 hours
This calculator provides simplified estimates for planning purposes only. Use your effective income tax rate on profit and exclude VAT/sales tax. Actual rates depend on your country, business structure, and deductions. Consult a tax professional for precise calculations.
This freelance hourly rate calculator helps you determine the right rate to charge based on your income goals, business expenses, taxes, and realistic billable hours. Whether you're new to freelancing or refining your pricing strategy, this tool gives you a clear starting point before negotiating or quoting projects.
The freelance hourly rate formula works backwards from your desired take-home income:
Hourly Rate = (Take-home income + Business expenses) ÷ (1 – Tax rate) ÷ Billable hours per year
This calculation accounts for:
Learning how to calculate your freelance rate properly ensures you cover your costs and earn sustainably.
Most freelancers can only bill 50–60% of their total working hours. The remaining time typically goes toward:
This calculator estimates your realistic billable hours based on industry benchmarks.
The recommended rate includes a 20% safety margin to account for:
This helps you build a sustainable freelance business rather than simply breaking even.
This tool provides simplified estimates for planning purposes. Always use your effective average income tax rate on profit (excluding VAT or sales tax). Actual rates depend on your country, business structure, and available deductions. Consult a qualified tax professional for country-specific guidance.
You can also use this calculator as a freelance pricing calculator for converting annual income goals into hourly, daily, or project rates.
Learn More
How to Calculate Your Freelance Hourly Rate (Step-by-Step) →Learn the exact formula, common mistakes, and real examples to set your freelance rate with confidence.
Everything you need to know about our tools. Can't find what you're looking for? Contact us.
Start with your desired annual take-home income, add your business expenses, then divide by your total billable hours per year. Remember to account for taxes by dividing by (1 - your tax rate). This gives you your minimum rate; adding a 20% buffer is recommended for unexpected costs and growth.
The recommended rate includes a 20% buffer above your break-even rate. This accounts for unbilled time (sick days, slow periods), unexpected expenses, business growth, retirement savings, and the ability to occasionally offer discounts without losing money.
Billable hours are only the time you can directly charge to clients. Most freelancers can only bill 50-60% of their working time. The rest goes to admin tasks, marketing, client communication, learning, and business development.
Most freelancers work 44-48 weeks per year after accounting for holidays, sick days, vacation time, and periods between projects. Using 47 weeks gives you 5 weeks off, which is a reasonable starting point.
Include all costs of running your freelance business: software subscriptions, equipment, insurance, accounting services, coworking space or home office costs, professional development, marketing, bank fees, and any contractors you hire.
Your tax rate depends on your country, income level, and business structure. In many European countries, freelancers pay 25-45% in combined income tax and social contributions. Consult a local tax professional for accurate rates in your situation.
Not necessarily. Your calculated rate is a baseline. You might charge more for rush projects, complex work, or clients with bigger budgets. Some freelancers also offer discounts for long-term contracts, retainers, or nonprofits they want to support.
It depends on your niche, experience, and location. Use this calculator to find your minimum sustainable rate based on income goals and costs, then compare it with market rates in your field to position yourself competitively.
Multiply your hourly rate by your realistic billable hours per day (often 5-6) to get a day rate. For project pricing, estimate total billable hours and add a buffer for scope changes and project risk.
Hourly pricing is straightforward and works well for ongoing work. Project pricing can increase earnings for well-defined scopes but requires careful estimating. Many freelancers use hourly as a baseline and quote projects from that foundation.
Use your effective income tax rate on profit (income minus expenses). Most freelancers pay a blended rate that includes income tax and social contributions. VAT/sales tax is usually charged on top and excluded from this calculation.