Freelance Rate Calculator
Calculate your freelance hourly rate from desired income, overhead costs, and billable hours. Free rate calculator for freelancers and solo consultants.
Inputs
Enter the minimum numbers needed to get a result.
Formula and example
Hourly rate = (Desired income + Overhead) / (Billable hours/week x Working weeks)
If you want $80,000 income, have $12,000 overhead, bill 28 hours/week for 48 weeks, your rate is $68.45/hour and you need $92,000 annual revenue.
Methodology & assumptions
Last updated: 2026-06-11Calculation method
Divides total annual revenue needs (desired income plus overhead) by total billable hours to find the minimum hourly rate. Your rate should also cover quarterly estimated taxes and self-employment tax. Use our Quarterly Tax Calculator to factor tax costs into your rate.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Does not account for income tax, self-employment tax, retirement savings, or non-billable admin hours. Actual take-home pay will be lower than the desired income figure entered. Use our 1099 Tax Calculator for a full tax estimate.
Input definitions
- Desired annual income: Take-home income goal before tax.
- Annual business overhead: Software, insurance, equipment, coworking, etc.
- Billable hours per week: Hours you can charge clients for each week.
- Working weeks per year: Weeks worked after vacation and holidays.
Frequently asked questions
What are billable hours?+
Billable hours are the hours you can directly charge clients for. They exclude admin, marketing, learning, and other non-client work.
How many billable hours per week is realistic?+
Most freelancers can bill 20-30 hours per week. The rest goes to admin, business development, and breaks.
Should overhead include my home office?+
Include any costs you would not have without the business: software subscriptions, professional insurance, equipment, and coworking fees.
Does this rate cover taxes?+
No. This rate covers your desired income and overhead only. Add 20-30% on top if you need to cover self-employment and income taxes.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Continue the workflow
Set your hourly rate, convert to a day rate, then price individual projects with a risk buffer.