See how much more you earn by raising your rate — and how many clients you can afford to lose.
How to calculate your freelance hourly rate
Your minimum freelance rate is what you must bill per hour to cover your target income, business expenses and taxes, given the hours you can actually bill. Most freelancers bill only 50-70% of their working time; the rest goes to sales, admin and learning.
Formula
Hourly rate = (Target income + Annual expenses) / (1 - Tax rate) / Billable hours per year Billable hours = Working weeks x Hours per week x Billable %
Example
Target income $60,000, expenses $6,000, taxes ~25%. 46 working weeks x 40 h x 60% billable = 1,104 billable hours. ($60,000 + $6,000) / 0.75 / 1,104 = about $80 per hour minimum.
Frequently asked questions
What is a good hourly rate for a freelancer?
It depends on your market and skill, but your floor is the break-even rate from this calculator: target income plus expenses and taxes, divided by realistic billable hours. Price above that floor based on the value you deliver.
How many billable hours does a freelancer have per year?
Typically 1,000-1,400. A 40-hour week over 46 weeks is 1,840 hours, but only 50-70% of that is usually billable.
Should I charge hourly or per project?
Use the hourly rate as your internal floor, then quote per project or per day where you can. Clients compare outcomes, and fixed prices reward you for working efficiently.