Business calculator

Freelance Rate Calculator

Estimate the hourly, daily, and monthly revenue targets needed for your income goal.

Your inputs

Desired annual personal incomeAnnual business expensesWorking weeks per yearWorking hours per weekBillable utilizationOptional tax bufferPlanning buffer only—not tax advice.

Result

Required hourly rate: $65.22
Suggested daily rate (8 hours): $521.74
Monthly revenue target: $6,000.00
Annual billable hours: 1,104

Results are estimates for planning and educational purposes.

How Do You Calculate a Freelance Hourly Rate?

Add the income, operating expenses, and optional planning buffer you need, then divide by realistic billable hours rather than every hour worked.

Why Are Billable Hours Different From Working Hours?

Sales, administration, learning, holidays, and gaps between projects consume time that cannot be invoiced. Billable utilization accounts for that difference.

How Do Expenses and a Tax Buffer Affect Your Rate?

Software, insurance, equipment, and subcontractors must be funded by client revenue. The tax buffer is only a planning input; it is not tax advice or a jurisdiction-specific estimate.

Formula

Required revenue = Desired income + Expenses + Tax buffer
Billable hours = Weeks × Weekly hours × Billable utilization
Hourly rate = Required revenue ÷ Billable hours

Example

$60,000 desired income, $12,000 expenses, and a $12,000 planning buffer require $84,000 revenue. With 1,000 billable hours, the base rate is $84 per hour.