Freelance Rate Calculator
Enter the income you want to take home, your yearly business costs, a tax allowance and how many hours you can bill. The calculator shows the hourly rate you need to charge.
How to use this freelance rate calculator
- Enter the amount you want to take home each year after tax.
- Enter your yearly business expenses.
- Enter a tax allowance. Ask an accountant what is right for you.
- Enter the hours you can bill each week and the weeks you will work.
- Press Calculate to see the hourly rate and day rate that reach your goal.
How to calculate a freelance rate
The rate is the revenue you need divided by the hours you can bill.
- Income before tax = take-home goal / (1 – tax allowance)
- Revenue needed = income before tax + business expenses
- Billable hours = hours per week x working weeks
- Hourly rate = revenue needed / billable hours
- Day rate = hourly rate x 8
Worked example
You want to take home $60,000 and expect $6,000 of business costs and a 25% tax allowance. The income before tax is 60,000 / 0.75 = $80,000, so you need revenue of $86,000. You can bill 25 hours a week for 48 weeks, which is 1,200 hours. The hourly rate is 86,000 / 1,200 = $71.67. A day rate for 8 hours is $573.33.
If you could bill 30 hours a week, the rate would fall to $59.72. If you want a buffer for slow months, add it to the income goal first.
Assumptions & limits
- The tax allowance is a single rate you choose. It is not tax advice, and real taxes depend on your income, your state, deductions and the structure of your business.
- Billable hours are fewer than hours worked, because finding clients, invoicing and admin take time. The default of 25 hours a week is a placeholder.
- The calculator does not include benefits such as health cover and retirement savings unless you add them to the income goal or the expenses.
- Late payment, unpaid gaps and scope changes are not modeled.
- Your market also sets what clients will pay, so use the result as a floor to compare with market rates.
Frequently asked questions
How do I calculate my freelance hourly rate?
Work out the revenue you need, which is your goal grossed up for tax plus expenses, then divide by the hours you can bill.
How many billable hours should I assume?
Many freelancers bill fewer hours than they work. 20 to 30 hours a week is a common range, but use your own figure.
Why is the freelance rate higher than a salary rate?
You pay your own tax, benefits and costs, and you are not paid for admin time or time off.
What tax rate should I use?
Ask an accountant. Self-employed workers usually pay income tax and self-employment tax.
Should I charge by the hour or by the project?
Either. Many people work out the hourly rate first, then quote a fixed price using their estimate of hours.
Is the day rate just eight times the hourly rate?
Yes, in this calculator. You can adjust if your day is longer or shorter.
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Last updated: November 2026