Freelance Hourly Rate Calculator
A simplified rate calculator for freelancers who think in terms of desired income, expenses and time off — not a full business P&L.
Recommended hourly rate
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Naive rate (salary ÷ 2,080)
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Break-even rate
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Annual billable hours
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Monthly revenue target
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| Project size | Price at recommended rate |
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Why "salary ÷ 2,080" is usually wrong: 2,080 assumes 52 weeks × 40 hours of fully billable work with zero business costs. Freelancers lose time to admin, marketing and unpaid work, and they carry costs an employer would otherwise absorb. This tool corrects for both.
How it works
Formulas used
Working weeks = 52 − vacation weeks Billable hours = Working weeks × Hours/week × Utilization Break-even rate = (Income + Expenses) / Billable hours Recommended revenue = (Income + Expenses) / (1 − Reserve% − Margin%) Recommended rate = Recommended revenue / Billable hours
Worked example
$70,000 desired income, $8,000 expenses, 4 weeks off, 40 hrs/week, 65% utilization, 10% reserve, 10% margin:
- Working weeks: 52 − 4 = 48
- Billable hours: 48 × 40 × 0.65 = 1,248 hours
- Naive rate: $70,000 ÷ 2,080 ≈ $33.65/hour
- Recommended rate: ($78,000 ÷ 0.80) ÷ 1,248 ≈ $78.13/hour — more than double the naive figure.
Limitations
This estimates a sustainable internal rate, not a market rate. It is a planning estimate, not tax advice.
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Frequently asked questions
Why is my recommended rate so much higher than salary ÷ 2,080?
Because that naive math assumes 100% billable time and zero business costs — neither is true for freelancers.
Should I charge exactly this rate?
Treat it as your internal floor. Market demand, experience and niche positioning may support charging more.