Freelance rate calculator
Work backwards from the income you want: see the minimum hourly rate that would cover it, your tax set-aside and your costs – with or without a buffer on top.
Your numbers
Example numbers are filled in – replace them with yours. Amounts are in any currency.
What you want left for yourself after tax and business costs.
Your own estimate, as a % of profit. 0–95.
Software, equipment, insurance, accounting, workspace, travel …
Vacation, sick days and public holidays.
Admin, sales and email are not billable.
Extra on top of the minimum for slow months and late payers.
Your estimated hourly rate
Example result for the numbers above.
- Minimum hourly rate
- 81.92
- Hourly rate with buffer
- 98.30
Based on revenue needed of 93,714.29 per year over 1,144 billable hours.
How it is calculated
- Profit needed before tax = take-home income ÷ (1 − tax set-aside %)
- Revenue needed = profit needed before tax + yearly business costs
- Billable hours = (52 − weeks off) × days per week × hours per day × billable %
- Minimum hourly rate = revenue needed ÷ billable hours
- Hourly rate with buffer = minimum hourly rate × (1 + buffer margin %)
Need a day rate, retainer or project quote?
This free calculator gives your hourly rate only. The Freelance Rate & Quote Calculator spreadsheet adds:
- Day rate and monthly retainer, each with and without your buffer
- A 12-line project quote builder (hourly and fixed-price lines)
- Rush surcharge, discount and deposit / balance
- A “below minimum” warning when a quote pays less per hour than your minimum
Free: Freelance Tax Calculator
Know how much to set aside for tax. Enter your expected income, expenses and your own tax rates, and see your tax reserve in total, per month and per quarter.
Get the free Freelance Tax Calculator