Freelance Hourly Rate Calculator
Set a freelance hourly rate that covers your desired salary, business expenses, taxes, and profit. Enter your targets and billable hours to get a recommended rate and income projections.
How it works
Your take-home pay depends on more than the rate you charge. You need to cover business expenses, set aside money for taxes, and leave room for profit. This calculator works backward from the annual salary you want to the hourly rate you need to charge.
First we add your desired salary and annual business expenses to get the total amount you need before tax. Then we divide by (1 − tax rate) to get the gross income needed to leave that amount after tax. We then divide by (1 − profit margin) so you keep a buffer for reinvestment or savings.
The final number is divided by your total billable hours per year (billable hours per week × weeks worked per year) to get the recommended hourly rate. Monthly and annual gross figures show what you’d need to earn at that rate.