Freelance Hourly Rate Calculator
Your working hours are not all billable. Enter your annual income target, business costs, working weeks and realistic billable hours to estimate a starting hourly rate.
Your calculation
Free toolUse one currency and a consistent tax basis. No currency conversion.
Results include only the costs and assumptions entered.
How to use this calculator
Enter your values in one currency. The result updates as you type. Check the fee and tax assumptions before using it for a pricing decision, then download a PDF if you want a record.
How the result is calculated
Hourly rate = (annual pre-tax income target + annual expenses) ÷ (working weeks × billable hours per week). Income tax, pension and unpaid leave allowances must be included in your target if needed.
Worked example
£36,000 target plus £6,000 expenses, 46 weeks and 25 billable hours a week gives £36.52/hour.
What should I include in my costs?
Include the costs that change with the item or order: materials, purchasing, making time, packaging, fulfilment and applicable fees. Allocate wider overhead separately. An omitted cost will make the estimate look better than it should.
Does this calculate my tax liability?
No. Entered tax treatment is an assumption for this calculation. The tool does not determine VAT registration, sales-tax nexus, tax rates by location or business income taxes. Check unusual situations with a qualified adviser.
Can I use USD?
Yes. Choosing US inputs uses dollars without converting amounts. Country-specific presets only apply where explicitly stated. Changing a symbol does not establish a platform fee or tax rule.
Questions about this calculation
Should I use every working hour as billable?
Use the hours clients realistically pay for after marketing, proposals, administration and gaps. Divide the annual target and expenses by those paid hours across your working weeks.
Does the result calculate take-home pay?
It uses the pre-tax income target and expenses entered. It does not establish personal tax, pension, employment status or other obligations. Include explicit suitable allowances and professional advice where required.