Freelance Hourly Rate Calculator
The most common freelance pricing mistake is converting a salary straight into an hourly rate: $70,000 ÷ 2,080 hours = "$34/hour". Employees are paid for every working hour. Freelancers are paid only for billable hours, and out of that revenue they also fund their own equipment, software, insurance, unpaid vacation, and the marketing and admin hours no client pays for.
This calculator does the conversion properly. From your target income, business costs, realistic billable hours and time off, it derives the minimum hourly and day rate at which freelancing actually pays you what you intend.
The freelance rate formula
Billable hours per year = Billable hours per week × (52 − Weeks off)
Required revenue = (Target income + Business costs) × (1 + Buffer%)
Minimum hourly rate = Required revenue ÷ Billable hours per year
People underestimate two inputs. Most full-time freelancers bill 20–30 hours a week, not 40. The rest goes to finding work, admin and unpaid revisions. The buffer absorbs the gaps between clients and the slow-paying invoices every freelancer eventually meets.
Worked example
Target income $70,000, business costs $6,000, billing 25 hours/week with 4 weeks off and a 15% buffer:
| Billable hours | 25 × 48 = 1,200 hours/year |
|---|---|
| Required revenue | ($70,000 + $6,000) × 1.15 = $87,400 |
| Minimum hourly rate | $87,400 ÷ 1,200 = $73/hour |
| Day rate (8 billable hours) | $584 |
More than double the naive "$34/hour", and that is the floor: the rate at which freelancing merely matches the target salary. Anything below it means paying to work.
From minimum rate to market rate
This calculator prices your costs. The market prices your value. Treat the result as a walk-away floor, then set your actual rate against what your niche pays. Specialists with measurable results routinely charge multiples of the generalist rate. Raise rates with each new client, and quote day or project rates instead of hourly to shift the conversation from your time to the client's outcome.
Tax comes out of your target income. Self-employed workers pay income tax plus self-employment contributions, and nobody withholds it for you. Set aside 25–35% of every invoice in a separate account to avoid the first-year tax shock. To compare freelancing against a job offer, convert the offer with the salary to hourly calculator.
Frequently asked questions
How do I convert a salary to a freelance rate?
A rough shortcut: take the equivalent employee hourly wage and multiply by 1.5–2× to cover benefits, unpaid time, business costs and non-billable hours. This calculator replaces the shortcut with your actual numbers, which is easier to defend in a negotiation.
How many billable hours per week is realistic?
Most full-time freelancers sustainably bill 20–30 hours a week. The rest goes to proposals, marketing, invoicing, calls and professional development. New freelancers often bill less while building a client base, which is what the buffer input is for.
Should I charge hourly, daily or per project?
Hourly is simplest and fits open-ended work. Day rates suit on-site or blocked work. Project (fixed) pricing rewards efficiency and is often most profitable once you can scope accurately. Whatever you quote, check it against your minimum hourly rate.
Does the rate include taxes?
The rate is built to deliver your target income before personal tax, like a salary. Income tax and self-employment contributions come out of that income, so pick a target comparable to a gross salary, not a take-home figure.
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This calculator is for general information and education only. It is not professional advice. Confirm important decisions with a qualified adviser.