Hourly Rate Calculator
Calculate your ideal hourly rate based on desired income, expenses, and billable hours. Price your freelance services profitably.
How much you want to take home each year
Realistic hours you can bill to clients (not admin time)
Time off, holidays, and sick days
Software, equipment, insurance, taxes, etc.
Buffer for growth and unexpected costs (typically 15-25%)
Be Realistic: Most freelancers can bill 25-35 hours per week after accounting for admin, sales, and non-billable work.
Include Everything: Factor in health insurance, retirement savings, equipment, software, and professional development.
Build in Buffer: A 15-25% profit margin protects you from unexpected costs and slow months.
Market Research: Compare your calculated rate with market rates for your skill level and location.
How to Use This Hourly Rate Calculator
Our free hourly rate calculator helps freelancers and consultants determine the right rate to charge based on their income goals, business expenses, and available time. Unlike simple calculators, this tool accounts for vacation time, profit margins, and the reality that not all your working hours are billable.
Why Your Hourly Rate Matters
Setting your hourly rate too low means working long hours for less money than you need. Setting it too high can price you out of the market. This calculator helps you find the sweet spot where you're profitable but competitive.
Common Mistakes to Avoid
- • Ignoring Expenses: Remember to include taxes, insurance, software, and equipment
- • Overestimating Billable Hours: Most freelancers can only bill 60-70% of their working hours
- • Forgetting Time Off: Everyone needs vacation, sick days, and holidays
- • No Profit Margin: You need buffer for slow months and business growth
Adjusting Your Rate Over Time
Your hourly rate should increase as you gain experience and expertise. Review and adjust your rate annually, or whenever you add significant new skills to your repertoire. Track your actual project profitability to ensure your rate is working.