Freelance Hourly Rate Calculator
Most freelancers undercharge because they divide a salary by 2,080 hours and stop there. This calculator works backwards from the income you want to keep, then adds business expenses, taxes, time off and the hours you can't bill.
The currency only changes the symbol. No exchange rates are applied.
Your result
How it works
Your take-home goal is what is left after tax, and taxes are charged on profit (revenue minus expenses). So the calculator first grosses up your goal for tax, then adds your expenses back to get the revenue you need to invoice.
It then counts how many hours you can realistically bill: weeks worked, times hours per week, times the share of that time you bill. Revenue divided by billable hours gives your rate.
Revenue needed = Take-home goal / (1 - tax rate) + Expenses
Billable hours = (52 - weeks off) x hours per week x billable share
Hourly rate = Revenue needed / Billable hoursExample
A take-home goal of 60,000, expenses of 6,000 and a 25% tax rate need 86,000 in revenue. With 5 weeks off, a 40-hour week and 60% billable time you bill 1,128 hours a year, so the minimum rate is about 76.24 per hour.
Frequently asked questions
Why not just divide my salary by 2,080?
An employee is paid for every working hour and gets paid leave, equipment and employer contributions. A freelancer pays for all of that personally and only earns during billable hours, so the same salary needs a much higher hourly rate.
What billable percentage should I use?
Many freelancers bill roughly half to two thirds of their working hours, and less when starting out. If you track your time, use your real figure instead of a guess.
Does this include income tax and social contributions?
It uses one flat percentage on profit. Real tax systems have brackets, deductions and separate contributions, so pick a rate that reflects your situation and check it with an accountant.
Is this the rate I should quote clients?
Treat it as your floor, not your price. Market rates, your specialisation and the value you deliver can justify charging more. Pricing below this number means you earn less than your goal.
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This calculator gives estimates for information only. It is not financial, tax or legal advice, and real-world results depend on your local rules, contract and circumstances.