What this calculator does
Use this calculator as a planning tool when you want to reverse-calculate a target hourly rate from the income you want to earn and the business costs you need to cover.
Freelance Rates
Freelance Hourly Rate Calculator
Estimate the hourly rate you need to charge based on income goals, overhead, working weeks, and fee buffers.
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
Formula used
Revenue needed = income goal + annual overhead. Base hourly rate = revenue needed / annual billable hours. Suggested hourly rate = base hourly rate / (1 - payment fee - buffer).
Worked examples
- If your income goal is $80,000, overhead is $12,000, and you only bill 20 hours a week for 46 weeks, your charge rate needs to be much higher than a simple salary-to-hour conversion.
- Adding a payment fee and admin buffer protects your rate from processor costs and non-billable work.
Notes
- This is a planning model, not tax, legal, or accounting advice.
- Billable hours are usually much lower than total working hours, which is why freelance rates often need a larger buffer.
- Use this result as a floor or reference point before adjusting for positioning, complexity, and market fit.