Free tool
Freelance Hourly Rate Calculator
Work out the hourly rate you need to charge to hit your income goal — after costs, and based on the hours you can actually bill.
Find your hourly rate
The pre-tax income you want to earn in a year.
Software, equipment, insurance, and other yearly expenses.
Hours you can actually bill clients — not total hours worked.
52 minus vacation, holidays, and time off (e.g. 46).
Your hourly rate
— / hour · in the currency you entered
Enter your numbers to see the rate you need to charge.
01
How to set your hourly rate
The simplest way to price your time is to work backwards from what you need to earn. Add the income you want to your yearly business costs, then divide by the hours you can actually bill in a year. The result is the minimum rate that covers your goals — before tax and before any profit margin.
The formula
Hourly rate = (target income + business costs) ÷ (billable hours/week × working weeks)
The key is "billable" hours — the ones you can actually charge for, not the 40 you sit at a desk. Time spent on sales, admin, and rest still has to be paid for by your billable hours.
A worked example
To earn 90,000 with 10,000 in costs, billing 25 hours a week over 46 weeks (1,150 billable hours), you need (90,000 + 10,000) ÷ 1,150 ≈ 87 per hour.
02
What the rate doesn't include
- Tax — the rate is pre-tax; set aside what you owe separately.
- Profit margin — this is your break-even; add margin so the business grows.
- Non-billable time — if your billable hours drop, your effective rate does too.
- Market rates — check what clients in your niche actually pay; the formula sets your floor, not your ceiling.
Related tool
Billable Utilization Rate Calculator
See what share of your hours are billable — the input that drives everything above.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your target annual income to your yearly business costs, then divide by your billable hours per year (billable hours/week × working weeks). For example, 100,000 total ÷ 1,150 billable hours ≈ 87 per hour.
How many billable hours should I plan for?
Fewer than you think. Most freelancers bill 50–70% of their working hours once sales, admin, and rest are counted — so a 40-hour week is often 20–28 billable hours. Plan with billable hours, not total hours.
Should my hourly rate include tax?
The formula gives a pre-tax rate. Tax is paid on top, out of what you earn — so set a portion of every invoice aside for it, and treat the calculated rate as a minimum, not a target.
Ready when you are
Track your real rate as you work
A target rate is a start — Timix.AI shows your effective rate and per-client profitability from the hours you actually log, so you can see which work truly pays.