Freelance Rate Calculator
Work out the hourly rate you need to earn your target salary, after your business expenses — and see what that rate pays you each month and each day.
This is the minimum rate that pays your salary and covers your expenses. Most freelancers charge more than this — see the FAQs below.
How to use this freelance rate calculator
A freelance rate calculator works out the hourly rate you need to earn the salary you want, once your business expenses are covered. Enter your target salary, your billable hours and your expenses, and it shows your hourly rate — plus what that rate earns you each month and each day.
Step 1: Enter the salary you want to take home in a year. This is the pay you want after your costs, not your turnover.
Step 2: Enter your billable hours for the year — the hours you actually charge clients for. Below, in the section on billable hours, we explain why this number is smaller than your working hours.
Step 3: Add your annual business expenses — software, equipment, internet, tax set-aside — or leave it at 0. Your hourly rate, monthly income and daily income appear straight away.
Worked example
Say you want a salary of $60,000 a year, you expect 1,000 billable hours, and your business expenses are $5,000 a year.
Add the salary and the expenses: $60,000 + $5,000 = $65,000. Divide by your billable hours: $65,000 ÷ 1,000 = $65.00 an hour. That is the rate you need to charge to take home $60,000 in a year.
At that rate, your monthly income is $65.00 × 1,000 ÷ 12 = $5,416.67, and your daily income is $65.00 × 8 = $520.00 — eight billable hours in a working day.
Billable hours vs working hours
Not every working hour is a paid hour. Admin, finding clients, answering emails, learning new skills and chasing invoices all take time — and nobody pays you for them. Billable hours are always fewer than working hours.
A full-time employee works about 2,000 hours a year. A freelancer who bills 1,000 to 1,400 hours a year is doing well — the rest of the time keeps the business running. Enter your honest billable hours, not a wishful number, or the rate this calculator gives you will be too low.
Why expenses matter
A freelancer pays for their own tools, internet and tax — and for the days they are sick or on holiday. Your rate has to cover those costs, or the salary figure is a lie. That is why this freelance rate calculator adds your expenses to your salary before dividing by your hours.
Some expenses are obvious — software and equipment. Others are easy to miss: the part of your phone and internet bills used for work, insurance, bank charges, and the money you set aside for tax. Add them all, honestly, and the rate you get is one you can actually live on.
Frequently asked questions
What is a freelance rate?
A freelance rate is the price you charge for your work, usually by the hour. This calculator works out the hourly rate you need to earn your target salary after your business expenses.
How many billable hours should I enter?
Enter the hours you actually charge clients for in a year, not every hour you work. Most freelancers bill for 1,000 to 1,400 hours a year — the rest goes to admin, finding clients and learning.
What counts as a business expense?
Anything you pay for to run your freelance work: software, equipment, internet, phone, insurance, and money set aside for tax. Add them all up for the year and enter the total.
Should I charge more than this rate?
Yes, if you can. This rate is the floor — the minimum that pays your salary and covers your costs. Most freelancers charge above it, to allow for quiet months and to grow.
Is this exact?
No — it is a starting point. Real rates also depend on your skill, your market and your clients. But it tells you the lowest rate you can afford to accept.