Freelancer Rate Calculator

Most freelancers undercharge because they divide their income goal by 2,080 hours, as if every working hour were billable. It is not: proposals, admin, marketing and client hunting are unpaid. This calculator uses your real billable hours.

How it works

Rate = (income goal + expenses) × (1 + buffer %) ÷ billable hours per year, where billable hours = billable hours per week × (52 − weeks off). The buffer covers self-employment tax and gaps between projects.

Worked example

Income goal $60,000 + expenses $6,000 = $66,000. With a 10% buffer the revenue target is $72,600. At 25 billable hours a week and 4 weeks off, billable hours are 1,200, so the minimum rate is $60.50 an hour. Dividing by 2,080 hours instead would give $34.90, which would leave you roughly $30,000 short over the year.

Frequently asked questions

How many hours do freelancers actually bill?

Established freelancers commonly bill 20 to 30 hours in a 40-hour week. Beginners often bill fewer while building a client base. Track your own time for a month to find your real number.

Should I charge exactly this rate?

Treat it as your floor, not your price. Specialised skills, urgent work and corporate clients can justify charging more. Never charge below the floor for long, or the maths stops working.

What about day rates?

Multiply your hourly floor by the billable hours you actually work in a day, usually 6 to 8, not by 24 and not by a full calendar day.

This calculator gives an estimate for planning. It does not account for taxes or deductions unless stated. See the disclaimer.