Freelance Hourly Rate Calculator

Q: What is a billable hour?

A billable hour is time you can charge a client for. Emails, finding work, invoicing and learning new skills are unpaid, so most freelancers bill only 40–60% of the hours they work.

Q: How does this calculator work out my rate?

It takes your take-home goal, adds the tax you set aside, adds your business costs, then divides the total by the billable hours you will work in a year after time off. If you work through a marketplace, it adds the platform fee on top.

Q: What tax percentage should I enter?

It depends on your country and income. Many freelancers set aside 15–30%. Check your local tax rules or ask an accountant, because this calculator gives an estimate only.

Q: Should I charge by the hour or by the project?

Use the hourly rate as your minimum. For projects, multiply it by your estimated hours, then add a buffer for revisions. The project quote box below does this for you.

Work out the lowest hourly, daily and project rate you can charge and still hit your income goal after taxes, costs and unpaid time. Ensure your independent business remains profitable by calculating your true Minimum Viable Rate (MVR) across billable hours, software overhead, and self-employment taxes.

Minimum hourly rate to charge

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Fill in the form and press Calculate.

–Day rate (5-day week)

–Week rate

–Monthly billing needed

–Billable hours per year

Project quote for hours: –

This is an estimate with simplified tax maths. Rules differ by country, so check with a local accountant before setting prices. Day rate assumes a 5-day working week.

Freelance rate questions

What is a billable hour?

A billable hour is time you can charge a client directly for. Administrative tasks such as sending emails, finding new work, handling invoicing, and learning new professional skills are entirely unpaid. Because of this non-billable overhead, most independent freelancers and consultants realistically bill only 40% to 60% of their total working hours each week.

How does this calculator work out my rate?

It takes your targeted monthly take-home income goal, incorporates your estimated tax obligations, adds your continuous monthly business operating costs, and divides that total gross requirement by the actual billable hours you expect to work annually after subtracting time off. If you operate through a freelance marketplace or platform, it layers the platform fee directly on top to ensure your net goals remain untouched.

What tax percentage should I enter?

Your required tax set-aside depends heavily on your geographic location, local tax brackets, and legal entity structure. Many self-employed professionals comfortably set aside anywhere from 15% to 30% to cover income taxes and social contributions. Always consult local tax guidelines or a professional accountant for precise figures tailored to your situation.

Should I charge by the hour or by the project?

You should always use your calculated hourly rate as an absolute minimum baseline. For fixed-scope projects, multiply your baseline rate by your estimated hours, then add a safe buffer percentage for client revisions and unexpected scope expansion to protect your profit margins.