Free Freelancer Hourly Rate Calculator

What is a freelancer hourly rate?

Your freelancer hourly rate is the amount you charge per billable hour to cover business expenses and reach your target take-home income. It turns an annual income goal into a practical number you can quote on proposals and timesheets.

How this calculator works

1. Set your income goal: Enter the annual income you want to keep after tax planning, not the gross revenue you bill clients.
2. Add annual business expenses: Include software, insurance, equipment, accounting fees, and other costs you pay to run the business.
3. Estimate billable time: Enter how many hours you can bill per week and how many weeks you work in a year after holidays and admin time.
4. Calculate required revenue: The calculator adds your income goal and expenses to find the total revenue you need to earn.
5. Divide by billable hours: Required revenue is divided by total billable hours per year to produce your minimum hourly rate.

Freelancer hourly rate formula

Total billable hours per year is billable hours multiplied by billable weeks. Required revenue covers both your personal income target and business costs.

Worked example

Suppose you want £60,000 take-home, spend £12,000 on business costs, bill 30 hours per week, and work 46 billable weeks per year. Required revenue is £72,000. Billable hours per year are 1,380 (30 × 46). Your hourly rate is £72,000 ÷ 1,380 = £52.17.

When to use this calculator

Use it when setting rates for a new freelance role, checking whether current pricing covers expenses, or preparing a quote based on estimated project hours.