How to use freelance hourly rate calculator
- Enter an annual personal income goal.
- Add annual overhead and time available to work.
- Specify the share of hours spent on nonbillable work and optional tax reserve.
- Compare a breakeven rate and a buffered suggestion.
Example
For a $60,000 pretax target, $10,000 overhead and 1,000 billable hours, the baseline is $70 per hour before optional buffers.
How the calculation or document works
Revenue need = income target ÷ (1 − assumed tax %) + overhead; billable hours = weeks × weekly hours × (1 − nonbillable %); base rate = revenue need ÷ billable hours.
Frequently asked questions
Is this my take-home income?
The income input is pretax unless you add a simplifying tax reserve percentage. Real tax rules vary.
Do I deduct nonbillable hours twice?
No. Nonbillable time is removed once from total working capacity.
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