What it does
A planning tool for freelancers who want to set a rate based on real numbers — income goal, overhead, working weeks, and the fee buffer that processors take from every payment.
Freelance Rates
Freelance Hourly Rate Calculator
Start with what you want to earn and work backwards to the hourly rate that actually covers overhead, time off, and fees.
Annual billable hours920
Base hourly rate$100.00
Suggested hourly rate$117.65
Suggested day rate$705.88
Example monthly retainer (32h)$3,764.71
How the math works
Revenue needed = income goal + annual overhead. Base hourly rate = revenue needed / annual billable hours. Suggested hourly rate = base hourly rate / (1 - payment fee - buffer).
Try it with real numbers
- If your income goal is $80,000, overhead is $12,000, and you only bill 20 hours a week for 46 weeks, the charge rate needs to be much higher than a simple salary-to-hour conversion.
- Adding a payment fee buffer and admin overhead protects your rate from the costs that show up between client payments.
Good to know
- This is a planning model, not tax, legal, or accounting advice.
- Billable hours are usually much lower than total working hours — that is why freelance rates often need a bigger buffer than expected.
- Use the result as a floor or reference point, then adjust for positioning, complexity, and market fit.