Hourly Rate Calculator
Your hourly rate is the foundation of every quote, proposal, and contract. Set it too low and you subsidize client work with personal savings. Set it too high without justification and you price yourself out of reasonable projects. The right rate covers expenses, taxes, benefits, downtime, and profit.
This calculator uses current 2026 tax and cost assumptions to show you the minimum rate you need to hit your financial goals. Adjust the inputs to match your actual situation.
Find your ideal freelance hourly rate based on expenses, income goals, and billable hours.How to use this tool
- Fill in the form fields with your details.
- Review the live preview as you type.
- Use the action buttons below to download, print, or reset.
Hourly Rate Calculator
Income Goal & Schedule
Annual income target after expenses.
Hours you can bill each week.
Vacation and holiday weeks per year.
Weeks of vacation/holidays per year (0-52).
Business Expenses (Annual)
Name of this expense.
Annual expense amount.
Personal Expenses (Annual)
Name of this expense.
Annual expense amount.
Your Suggested Hourly Rate
Minimum Recommended Rate
$66.67
per hour
Annual Revenue Needed
$80,000.00
Annual Billable Hours
1200 hrs
Working Weeks
48 weeks
Business Expenses
$0.00
Personal Expenses
$0.00
Hourly Rate Calculator FAQ
How many billable hours should I expect?
Most freelancers bill 20-30 hours per week. The rest of your time goes to admin, marketing, learning, and unpaid work. Be realistic when entering billable hours to avoid undercharging.
Should I include personal expenses in my rate?
Yes. Your hourly rate must cover both business costs and your desired lifestyle. If you only account for business expenses, you may earn enough to stay open but not enough to live on.
What if my suggested rate is too high for the market?
A high result means either your expense goals are ambitious or your billable-hour assumption is low. Consider trimming expenses, increasing billable capacity, or positioning for higher-value clients rather than just lowering your rate.
How do I raise my hourly rate?
Raise rates gradually for new clients, bundle skills into higher-tier packages, and specialize. Existing clients can be grandfathered with a notice. Read our blog post on freelance pricing for more strategies. For strategies on pricing and positioning, read How Much Should Freelancers Charge.
Next step
Once you've finished here, keep the momentum going with one of these.
Break-Even Calculator
Find the minimum revenue needed to cover your costs.
Invoice Generator
Create professional invoices at your calculated rate.
Budget Planner
Plan monthly budgets for irregular freelance income.
Margin Calculator
Check if your hourly rate delivers the margin you expect.
Percentage Calculator
Calculate tax, discount, and fee percentages quickly.
Frequently Asked Questions
Should I use the same rate for every client?
No. Charge premium rates for specialized work, rush projects, or corporate clients. Charge lower rates for nonprofits, referrals, or portfolio pieces.