Free freelance pricing tool

Freelance Hourly Rate Calculator

Estimate a sustainable freelance hourly rate, day rate, and project quote from your income goal, business expenses, tax reserve, billable time, and payment fees. Your calculations run in this browser.

Your rate plan

Use annual amounts and realistic estimates. Results update automatically or when you click calculate.

Currency

Target annual take-home incomeIncome you want to retain after the tax reserve, before business expenses.

Annual business expensesSoftware, equipment, insurance, workspace, and other business costs.

Estimated tax reserve (%)A planning percentage, not a calculation of your actual tax bill.

Platform fee (%)Marketplace or platform commission on client billings.

Payout / conversion fee (%)Percentage lost to payment processing, withdrawal, or currency conversion.

Extra overhead markup on expenses (%)Optional extra allowance applied to your listed expenses.

Weeks off per year

Working hours per weekTotal working time, including non-billable work.

Billable share of working time (%)Time you realistically expect to invoice to clients.

Billable hours in a dayUsed to convert your hourly rate into a day rate.

Profit / slow-month buffer (%)Optional margin added to the calculated minimum rate.

Project estimate (hours)

Optional market benchmark (per hour)Compare with a rate relevant to your skill, experience, client type, and market.

Your estimated rates

Recommended hourly rate, including your chosen buffer

$0.00/hr

Minimum required hourly rate$0.00/hr

Day rate$0.00

Weekly billings at billable capacity$0.00

Average monthly billings$0.00

Annual billings at recommended rate$0.00

Estimated project quote$0.00

Rate vs. your benchmarkAdd a benchmark

Annual estimate breakdown

Available working weeks48 weeks
Annual working hours1,920 hours
Annual billable hours1,152 hours
Target take-home income$50,000
Business expenses entered$6,000
Expenses plus overhead markup$6,000
Estimated tax reserve allowance$0
Estimated platform fee allowance$0
Estimated payout / conversion fee$0
Extra amount from rate buffer$0

Results update when you calculate.

These are estimates based on the values you enter, not guaranteed earnings or market-rate recommendations.

How to calculate your freelance rate

A sustainable freelance rate needs to cover your desired income, business costs, estimated tax reserve, and fees while accounting for unpaid time spent finding clients, doing administration, and managing projects.

Annual billable hours: (52 − weeks off) × working hours per week × billable share.
Income before tax reserve: target take-home income ÷ (1 − tax reserve rate).
Adjusted expenses: annual expenses × (1 + overhead markup).
Required billings before your buffer: (income before tax reserve + adjusted expenses) ÷ ((1 − platform fee) × (1 − payout/conversion fee)).
Minimum hourly rate: required billings ÷ annual billable hours.
Recommended hourly rate: minimum hourly rate × (1 + buffer).
Day rate: recommended hourly rate × billable hours per day.

Tips for setting a realistic rate

Count only the hours you can reasonably bill, not every hour you work.
Include recurring software, equipment, insurance, accounting, and workspace costs.
Check the actual platform and payment-provider fees you pay.
Choose a tax reserve based on reliable guidance for your location; tax rules vary.
Use market benchmarks for comparable skills, experience, project scope, and client type.
Review your rates when your expenses, demand, skills, or available working hours change.

Important: This calculator is for general planning and education. It is not tax, accounting, legal, or financial advice. The tax reserve is a simplified percentage estimate and does not model tax brackets, deductions, or local rules.

Frequently asked questions

How much should I charge as a freelancer per hour?

Start with your desired take-home income, business expenses, estimated taxes and fees, then divide the required billings by your realistic annual billable hours. Your experience, specialist skills, client type, and market also affect the rate you can charge.

What is the difference between a minimum rate and a recommended rate?

The minimum rate estimates the hourly amount needed to cover the inputs you entered. The recommended rate adds the optional buffer you choose for profit margin or slower periods.

How many hours should I count as billable?

Count hours you can invoice to clients. Prospecting, proposals, bookkeeping, training, administration, and business development often take time but may not be billable. Use a conservative estimate if you are unsure.

How do platform and payout fees affect my rate?

Fees reduce the share of client billings you keep. This calculator increases the required billings to account for the platform fee and payout or conversion percentage you enter.

Does this calculator calculate my actual taxes?

No. It applies a single percentage as a simplified tax reserve estimate. Actual tax depends on your jurisdiction, income, business structure, deductions, and other circumstances. Consult official guidance or a qualified tax professional.

Can I use this calculator for a day rate or project quote?

Yes. The day rate multiplies your recommended hourly rate by the billable hours per day you enter. The project quote multiplies it by your estimated project hours; adjust for scope risk, revisions, and deliverables as needed.