Freelance Hourly Rate Calculator
Calculate the hourly rate you need as a freelancer to achieve your desired annual income. Including costs, taxes and non-billable hours.
How do you calculate your hourly rate as a freelancer?
As a self-employed professional, your hourly rate must cover not only your desired income, but also:
- Taxes
- Business costs
- Non-billable hours
- A buffer for illness and holidays
This calculator helps you determine the hourly rate you need to run a financially healthy business.
How does the calculation work?
Step 1: Convert net income to gross income (taking your tax provision into account).
Step 2: Add business costs.
Step 3: Divide by the number of workable hours per year.
Formula:
Hourly rate = (Gross income + Costs) ÷ Workable hours
How many workable hours do you have per year?
On average:
- 52 weeks × 40 hours = 2080 hours
- Minus holidays
- Minus public holidays
- Minus sick leave
- Minus administration
Many freelancers end up with 1200–1500 billable hours per year.
Why is this important?
An hourly rate that is too low leads to:
- Financial pressure
- No financial buffer
- Chronic underpayment
A realistic rate provides peace of mind and stability.