Freelance Hourly Rate Calculator
Calculate what hourly rate you should charge as a freelancer or self-employed professional, based on desired income, fixed costs and billable hours.
How to use the freelance hourly rate calculator
- Enter the annual income you want to take home.
- Enter fixed annual costs (insurance, equipment, software, office space, etc.).
- Enter how many hours per week you can realistically bill (not total working hours — only the ones you can actually sell).
- Enter how many weeks of vacation you plan to take.
- The recommended hourly rate updates automatically.
Why aren't billable hours the same as working hours?
As a freelancer or self-employed professional, you spend part of your working time on things you can't bill directly — administration, client follow-up, marketing, bookkeeping. That's why it's important to calculate your rate based on billable hours, not total working time, otherwise you'll end up with a rate too low to actually cover what you need.
The formula is hourly rate = (desired annual income + fixed costs) ÷ billable hours per year, where billable hours per year is billable hours per week multiplied by the number of working weeks (52 minus vacation weeks).
Frequently asked questions
How many hours a week is realistic to bill?
Most freelancers bill somewhere between 20 and 30 hours a week, even though they "work" 40+ hours total — the rest goes to admin, sales and other non-billable tasks. The share varies a lot by industry and experience.
Should I add a buffer for periods without work?
Yes, it's wise — this calculator assumes steady work throughout the year. If you expect periods without paid work, either reduce the billable hours in the calculation, or add an extra buffer to your fixed costs.
Why is the hourly rate so much higher than a regular salary divided by working hours?
Because a regular employee has insurance, vacation, retirement contributions, equipment and more covered by their employer, and not all working hours need to be "sold" directly. As a freelancer, your rate has to cover all of this itself, spread across fewer billable hours than total working time.