Freelance hourly rate calculator
How much would you need to charge for the hours you can actually bill? Start with your own income target and costs, then compare schedules before discussing a rate with a client.
By Invoodle · Updated · US planning references reviewed October 2026
A planning model using one assumed effective tax percentage on personal gross income. Business costs sit outside that gross-up; the revenue buffer is markup, not profit margin or guaranteed after-tax savings. Defaults are fictional. This tool does not calculate actual tax, VAT/sales tax, market rates, exchange conversion or payment timing. It does not read or save invoice drafts.
Formatting only. Changing currency keeps the numeric amounts; it does not convert money or select a tax system.
After the assumed tax deduction, before any extra buffer. 0–1,000,000,000.
One planning percentage on personal gross income, not a marginal bracket. 0–99.99%. Default 30% is fictional.
Costs added outside the personal income gross-up. Do not count personal income or the same cost twice. 0–1,000,000,000.
Markup on personal gross income plus costs, not profit margin or guaranteed after-tax savings. 0–100%. Default 10% is fictional.
Use one total for holiday, public holidays and other whole weeks off. Avoid also subtracting those weeks from weekly hours. 0–51.99.
Paid client hours only; allow separately for admin and sales. 0.01–168 hours, a calculator bound rather than a suggested schedule.
Used only to convert the hourly scenario to a day rate, without a discount. 0.01–24 hours.
All inputs accept up to two decimals. The limits bound this planning model; they do not recommend tax rates, working hours or a buffer. Every monetary result must be at most 1,000,000,000,000.
Your planning scenario
- Personal gross income assumption
- $85,714.29
- Annual baseline including costs
- $94,714.29
- Annual revenue scenario
- $104,185.71
- Billable weeks
- 47
- Billable hours per year
- 1,175
- Hourly scenario
- $88.67
- Day scenario
- $620.68
- Monthly revenue average
- $8,682.14
Money is rounded independently to two decimals, ties up, after full-precision calculation. Day rate uses the unrounded hourly figure; multiplying the displayed hourly rate may differ by cents. Monthly is an annual average, not a cash-flow forecast.
A calculation link exposes your income target, tax assumption, costs, buffer, time inputs and currency to recipients. Typing does not update the URL. Copy only the scenario you want to share.
Compare two fictional schedules
Both examples use USD 60,000 personal income, 30% assumed tax, USD 9,000 costs, 10% buffer, five non-working weeks and a seven-hour day. Only weekly billable hours change. These are examples, not recommended rates or workloads.
References for checking your assumptions
The SBA discusses business costs and market research. The IRS explains US self-employed income and tax obligations. These US references do not validate the defaults, this formula, an individual tax rate or a worldwide tax method. Check the rules and expense treatment for your own business.
Turn an agreed rate into a clear document
A planning result is a starting point for a quote. Agree the scope, hours, currency, tax treatment and terms with your client. Opening the editor does not transfer this rate, choose a document mode or clear an existing draft.
Open document editorSee hourly and project invoice examples · Review a quote before work starts · Read the storage and sharing explanation
How to calculate a freelance hourly rate from an income target
List the personal income you want for the year, the costs of running the business and the time you expect clients to pay for. Keep the inputs in one currency. A busy working week can include sales calls, bookkeeping and training that you cannot bill; use paid client hours rather than every hour at your desk.
This is a cost-and-time scenario. It does not tell you what a designer, developer, writer or consultant can charge in a particular market. Compare the result with your scope, experience, client budget and evidence from your own work. A calculated rate does not guarantee enough bookings or collected revenue.
- Personal gross income assumption = annual personal income target ÷ (1 − assumed effective tax percentage ÷ 100).
- Annual baseline = personal gross income assumption + annual business costs.
- Annual revenue scenario = baseline × (1 + revenue buffer percentage ÷ 100).
- Annual billable hours = (52 − non-working weeks) × billable hours per working week.
- Hourly scenario = annual revenue scenario ÷ annual billable hours. Day scenario = unrounded hourly scenario × chargeable hours in one day.
Worked example: 25 or 20 billable hours a week
Take a fictional USD 60,000 annual personal income target, a 30% assumed effective tax deduction, USD 9,000 of annual costs and a 10% revenue buffer. Five non-working weeks leave 47 working weeks. The personal gross income assumption is USD 85,714.29; the baseline including costs is USD 94,714.29. The annual revenue scenario is USD 104,185.71 after the buffer.
At 25 billable hours per working week, the year has 1,175 billable hours. The hourly scenario is USD 88.67 and a seven-hour day is USD 620.68. At 20 billable hours, the same revenue is spread over 940 hours: USD 110.84 an hour and USD 775.85 a day. None of these inputs is a recommended tax rate, workload or price.
| Billable hours per working week | Annual billable hours | Hourly scenario | Seven-hour day scenario |
|---|---|---|---|
| 25 | 1,175 | USD 88.67 | USD 620.68 |
| 20 | 940 | USD 110.84 | USD 775.85 |
What the tax and revenue buffer inputs mean
The tax input is one assumed effective deduction from personal gross income. It does not calculate brackets, allowances, contribution limits, deductions, entity-specific rules or a tax return. Business costs are added outside the personal income gross-up. That simplification may not match how expenses or owner payments are treated in your jurisdiction. Use a checked planning assumption and review the actual tax position separately.
The buffer is extra revenue above the baseline, before any additional tax or costs it might create. A 10% buffer on a baseline of 100 adds 10 and gives 110 revenue; the extra 10 is 9.09% of that revenue. It is not a 10% profit margin and does not promise 10 of after-tax savings. Sales tax, VAT and payment-processing fees are not calculated automatically.
Choose billable hours without counting time off twice
Use non-working weeks for whole weeks you expect to be away from work. Use weekly billable hours for paid work during the remaining weeks, after allowing for admin, pitching and other unbilled time. If a quiet period is already included in non-working weeks, do not subtract it a second time from the same schedule.
Try a lower-hours scenario as well as your main estimate. The comparison shows how much the result depends on bookings. Use your own time records where available; this page does not assume a universal number of billable hours or recommend working near its input limits.
Fractional weeks and hours are supported to two input decimals. Annual billable hours retain up to four decimals. Each monetary result is calculated at full precision and independently rounded to two decimals, exact ties up. A day uses the unrounded hourly result, so displayed hourly rate times day length can differ by cents. Twelve displayed monthly averages can also differ slightly from the annual figure.
Use the scenario to prepare an hourly, day or project quote
For hourly work, agree the rate, time-recording method and approval of extra hours. For a day rate, define the chargeable hours in a day and the treatment of travel or partial days. This calculator multiplies by the hours you choose; it does not apply a day-rate discount.
For a fixed project, estimate the work and review scope, revisions, dependencies and delivery dates. An hourly scenario can help check the economics, but the project price still needs agreement. A retainer also needs a clear service period, included work and overage terms. No billing model guarantees a better margin.
Once a rate is agreed, use the freelance invoice examples or quote generator to prepare the document. The editor opens separately and does not import this calculation. Check currency, applicable taxes, required particulars and payment terms before sending anything.
Planning arithmetic, not a tax assessment or market-rate survey. Defaults are fictional. US SBA and IRS context reviewed October 2026; check local rules and your own assumptions.
Frequently asked questions
How do I calculate my freelance hourly rate?
In this model, divide your annual personal income target by one minus your assumed effective tax rate, add annual costs and apply a revenue buffer markup. Divide that revenue scenario by annual billable hours. The result depends on your assumptions; it is not a market-rate recommendation or actual tax calculation.
How many hours should a freelancer bill each year?
Use your own expected paid client hours. This calculator uses (52 minus non-working weeks) times billable hours per working week. For example, 47 weeks times 25 billable hours gives 1,175 hours. That is a fictional schedule, not an industry average or a recommended target.
Is the tax percentage my marginal income tax rate?
No. It is one assumed effective deduction from personal gross income for planning. A marginal tax bracket alone may not represent the combined effect of income tax, contributions, allowances and other rules. The calculator neither selects the correct percentage nor calculates your liability.
Is the revenue buffer the same as profit margin?
No. It is markup on the baseline of personal gross income plus business costs. A 10% buffer on 100 gives 110 revenue, so the extra 10 is 9.09% of revenue before any further tax or costs. The default is fictional and does not guarantee after-tax savings.
How is the freelance day rate calculated?
The day scenario is the unrounded hourly result multiplied by the chargeable hours you enter, with no discount. Each displayed monetary result is rounded independently to two decimals, so multiplying the displayed hourly rate can differ by cents. Agree the day length and any partial-day terms with your client.
Does changing currency convert the rate or add VAT?
No. It changes formatting while keeping the numeric inputs. It does not perform exchange conversion, select local tax rules or add VAT or sales tax. Keep inputs in one currency and check tax treatment separately before quoting.
Can I share a calculation or put it on an invoice?
Copy calculation includes the inputs, results and assumptions. Copy calculation link explicitly exposes the financial and time inputs to recipients; typing does not update the URL. Opening the document editor does not transfer the rate, choose a document mode or clear a draft. Review and enter the agreed figures yourself.