How do I calculate my freelance hourly rate?

Hourly rate = (target take-home ÷ (1 − tax rate) + expenses) × (1 + buffer) ÷ billable hours per year. With 46 working weeks at 40 hours and 60% billable, you have about 1,100 billable hours.

What percentage of my time will be billable?

Most solo consultants bill 50–70% of their working hours. The rest goes on sales, admin, invoicing and learning.

Should I charge hourly or per project?

Use this hourly figure as your floor, then quote projects or retainers based on value where you can. The consulting retainer calculator helps with value-based tiers.

Does this store my numbers?

No. Everything is calculated in your browser.

Freelancer & Consultant Rate Calculator · Startup & industry

Freelance Hourly Rate Calculator for Consultants

Work out the hourly and day rate you need after tax, expenses and time off.

100% free
No sign-up
Runs in your browser

Your numbers

Take-home income per year

What you want to keep after tax.

Business expenses per year

Software, equipment, insurance, accounting, health cover.

Tax rate

Hours per week

hrs

Weeks off per year6 weeks

Holidays, public holidays, sick days and training.

Billable share of your hours60%

The rest goes on sales, admin and finding the next client. 50–70% is typical.

Safety buffer

Current hourly rate

Result

Minimum hourly rate

$124

The least you can charge and still hit your take-home goal

Day rate (8h)

$989

Revenue needed / year

$136,467

Billable hours / year

1,104

Over 46 working weeks

Monthly revenue target

$11,372

Raise 37%

Your $90 rate is below the $124 you need, so you'd miss your goal even at your planned hours. Raise prices for new clients first, package work into fixed-price projects, or cut non-billable time.

Project quote helper

Estimated hours

hrs

Quote at minimum rate

$4,944

Revenue needed = (take-home ÷ (1 − tax rate) + expenses) × (1 + buffer). Billable hours = (52 − weeks off) × hours per week × billable share. Hourly rate = revenue ÷ billable hours. Calculated in your browser; nothing is stored.

How it works

How to use Freelancer & Consultant Rate Calculator

Enter the take-home income you want, your yearly expenses and your tax rate.

Set weeks off, hours per week and the share of those hours you can bill.

Read your minimum hourly and day rate and compare it with your current rate.

About

About this tool

New freelancers often divide their old salary by 2,080 hours and wonder why they're broke. Freelancers pay their own tax, expenses and time off, and only about half to two-thirds of working hours are billable once you count sales, admin and learning.

This calculator works backwards from the take-home pay you want. It adds tax, business expenses and a buffer for slow months, then divides by your realistic billable hours to give a minimum hourly rate, a day rate and the revenue you need each year.

Compare it with what you charge today, and use the project helper to turn an hours estimate into a quote.

Frequently asked questions

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