PaycheckHours

Freelance Hourly Rate Calculator

Hourly rate = (income you want + yearly business costs) ÷ billable hours a year. For $60,000 plus $6,000 of costs over 25 billable hours a week for 46 weeks (1,150 hours), the rate is $57.39 an hour.

Your year

Your rate

Hourly rate
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Day rate (8 billable hours)
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Billable hours a year
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Self-employed people usually pay their own income tax and self-employment tax, and get no paid leave. This tool does not include tax; ask a tax professional what to set aside.

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How it works

Billable hours a year = billable hours a week × weeks worked. Hourly rate = (income target + yearly costs) ÷ billable hours a year. Day rate = hourly rate × 8.

Worked examples

  1. $60,000 target, $6,000 costs, 25 billable hours a week for 46 weeks = 1,150 hours: $66,000 ÷ 1,150 = $57.39 an hour.
  2. The same year with 30 billable hours a week (1,380 hours): $66,000 ÷ 1,380 = $47.83 an hour.
  3. $45,000 target, no costs, 20 billable hours a week for 48 weeks = 960 hours: $46.88 an hour.

Common questions

What are billable hours?

Hours a client pays for. Time spent finding work, invoicing, learning and travelling is usually not billable, so billable hours are often well below the hours you work.

How many weeks a year should I count?

52 minus the weeks you plan to take off for holidays and illness and any slow weeks. Use your own numbers; there is no standard.

Does the rate include tax?

No. The income target is before income tax. Self-employed workers in the US generally pay self-employment tax as well; a tax professional can tell you how much to set aside.

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Cite this calculator

PaycheckHours, “Freelance Hourly Rate Calculator”, https://paycheckhours.com/freelance-hourly-rate-calculator/, accessed –.