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Freelancer Hourly RateCalculator

Work out the hourly rate you need to charge to hit your target income.

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Freelancer Hourly Rate Calculator

Work out the hourly rate you need to charge to hit your target income.

Hourly Rate to Charge

$55.00

Based on 1,200 billable hours/year to cover $60,000.00 target income plus $6,000.00 expenses.

Breakdown

Target take-home income$60,000.00
Business expenses$6,000.00
Revenue needed$66,000.00
Billable hours / year1,200
Hourly rate to charge$55.00
Revenue at this rate$66,000.00

Note:most freelancers can bill only a fraction of their total working hours (the rest goes to admin, marketing, unpaid pitches and time off) — that's why billable hours per week is usually lower than your total working hours. This doesn't account for taxes on business income; budget for those separately.

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Frequently Asked Questions

How do I work out what hourly rate to charge as a freelancer?

Add your target take-home income and annual business expenses together, then divide by your total billable hours per year (billable hours per week x working weeks per year). That gives the rate you need to charge, on average, to hit your target.

Why is billable hours per week usually much lower than total working hours?

Because time spent on admin, marketing, client acquisition, invoicing and unpaid pitches doesn't generate revenue. Most freelancers can only bill 50-70% of their total working hours — plan your rate around billable hours, not total hours worked.

Does this rate include taxes?

No — this calculates the rate needed to cover your target take-home income plus business expenses. You'll still need to set aside money separately for income tax and, where applicable, GST or self-employment tax.

Should I charge exactly this calculated rate?

Treat it as a floor, not a target — it's the minimum needed to hit your income goal at 100% utilization. Building in a buffer for slow months, taxes and unexpected non-billable time is usually wise.

Is this calculator free to use?

Yes, completely free with no sign-up or limits, and it works in any currency.

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