How is a freelance hourly rate calculated?

Target Hourly Rate = (Desired Take-Home Annual Salary + Annual Business Overhead + Estimated Income Taxes) / Annual Billable Hours.

What percentage of working time is typically billable for a freelancer?

Solo freelancers typically bill between 50% and 65% of their total working hours (approx. 20-25 hours/week), with the remainder spent on non-billable marketing, admin, client communication, and accounting.

Freelance & Career Suite • 100% In-Browser Privacy • Hourly, Day & Project Quotes

Free Freelance Hourly Rate & Project Pricing Calculator

Set profitable consulting rates. Account for desired take-home salary, self-employment taxes, equipment overhead, non-billable hours, and paid time off.

Income & Overhead Goals

Currency:

Target Annual Take-Home Net Income ($)

Annual Business Expenses ($)

Software, laptop, coworking, accounting.

Estimated Tax Rate (%)

Self-employment & income tax.

Billable Hours / Wk

Vacation Weeks / Yr

Profit Buffer (%)

Recommended Pricing Profitable Rate

Target Hourly Rate

$110.00 / hr

Day Rate (8 hrs): $880.00

Gross Revenue Needed $132,000 / yr

Total Billable Hours 1,200 hrs / yr

Freelancer Business Guide

How to Price Your Freelance Services for Long-Term Profitability

Transition from undercharging hourly rates to value-based project pricing, retaining healthy margins after taxes and overhead.

Frequently Asked Questions (FAQ)

Why should I not divide my salary by 2,080 hours (40 hrs/wk * 52 wks)?

As a full-time employee, your employer covers payroll taxes, healthcare, paid time off, and equipment. Freelancers spend 35% to 50% of their working hours on unpaid admin, marketing, and client pitches. Dividing by 2,080 will severely underprice your services.