Revenue is not personal income
Fees, business expenses, taxes, and reserves still have to come out of what you collect before the money reaches your pocket.
Finance
Freelance hourly rate calculator
Calculate a sustainable rate based on desired take-home income, expenses and truly billable time.
From desired income to a sustainable rate
Calculate your hourly rate
Start with three inputs. Then adjust expenses, taxes, fees, and time off.
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How to interpret your rate
A sustainable rate is not just salary divided by hours: it must also fund work you cannot bill.
Not every hour is billable
Sales, proposals, follow-up, training and administration consume necessary time, even when it does not appear on an invoice.
Quote with a practical buffer
The exact rate marks your minimum. Rounding it up makes quotes easier and reduces the risk of falling below your target.
How to estimate billable hours
Review two to four recent weeks. Add only the time you could bill to clients and divide it by all your working hours. Use a conservative scenario if you do not have data yet.
From hourly rate to fixed price
To quote a project, multiply this rate by the hours in each phase and add direct expenses, contingency, and scope risk. A fixed quote needs more information than a base rate.
Calculate a project priceFrequently asked questions
How do I calculate my freelance hourly rate?
First estimate monthly revenue needed to cover expenses, savings, fees and tax reserves. Then divide by the hours you can actually bill each month.
What percentage of my hours should be billable?
It depends on how you work. Proposals, sales, administration, training and accounting use non-billable time. Review past weeks for a realistic percentage.
Why should my rate include expenses and taxes?
Revenue is not personal income. Business expenses, payment fees and estimated tax reserves must be covered first.
What is the difference between minimum and practical rates?
The minimum rate is the exact mathematical result. The practical rate rounds up to the selected increment to simplify quotes without falling below the target.
Why is my hourly rate not equivalent to a salary?
Freelancers usually cannot bill every hour and must cover expenses, time off, administration, benefits and risks that employment may cover differently.
How do I turn my hourly rate into a project price?
Estimate hours for each phase and add direct expenses, contingency and scope. The hourly rate is a base, but a fixed price must account for project-specific risk.