Freelance Rate Calculator
Formula
Rate = Income ÷ (Hours/Week × Working Weeks)
Divide your desired annual income by total billable hours per year (hours per week × working weeks). Account for vacation, sick days, and non-billable time.
How to use
- Enter your target in the Desired Annual Income field.
- Enter your Billable Hours/Week and your Weeks Off/Year.
- Read the Hourly Rate needed to hit your goal.
Example
For $80,000 desired income, 30 billable hours/week, and 4 weeks off: 30 × (52 − 4) = 1,440 working hours, so $80,000 ÷ 1,440 ≈ $55.56 per hour.
Frequently Asked Questions
Why only 30 billable hours?
Freelancers spend 10-20 hours/week on admin, marketing, invoicing, and finding clients. Only 60-75% of work time is billable.
How is a freelance hourly rate different from an employee's wage?
An employee's wage covers only their time, while an employer separately pays for benefits, payroll taxes, equipment, and paid time off. As a freelancer you cover all of that yourself, so your rate usually needs to be noticeably higher than an equivalent salaried wage to net the same income. A common rule of thumb is that a freelance rate should be roughly 1.5 to 2 times what an employee earns per hour for similar work.
Should I charge the same hourly rate for every client or project?
The calculated rate is a baseline that ensures you hit your income goal, but many freelancers adjust it by project. Rush jobs, highly specialized work, or difficult clients may warrant a premium, while long-term retainers or large projects sometimes get a modest discount. It's also wise to revisit your rate yearly as your experience, demand, and expenses change.