Freelancer 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 entrepreneur, your hourly rate must not only cover your desired income, but also:
- Taxes
- Business expenses
- Non-billable hours
- Buffer for illness and vacation
This calculator helps you determine the hourly rate needed to run a financially healthy business.
How does the calculation work?
Step 1: Convert net income to gross (taking into account tax provision). Step 2: Add business expenses. 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?
Average:
- 52 weeks × 40 hours = 2080 hours
- Minus holidays
- Minus holidays
- Minus illness
- Minus administration
Many self-employed professionals end up with 1,200–1,500 billable hours per year.
Why is this important?
An hourly rate that is too low leads to:
- Financial pressure
- No buffer
- Structural underpayment
A realistic rate provides peace of mind and stability.