Freelance Hourly Rate Calculator
The hourly and day rate that pays your target income.
Use via API
Freelance hourly and day rate needed to reach a take-home income after tax, business expenses, non-billable time and weeks off. Send JSON, get JSON back.
POST https://pithlab.com/api/v1/tools/hourly-rate-calculator
curl https://pithlab.com/api/v1/tools/hourly-rate-calculator \
-H "Authorization: Bearer $PITHLAB_KEY" \
-H "Content-Type: application/json" \
-d '{"takeHome":60000,"expenses":6000,"taxRate":25,"hoursPerWeek":40,"nonBillable":25,"weeksOff":6,"hoursPerDay":8}'About the Freelance Hourly Rate Calculator
Work out the hourly and day rate you need as a freelancer from your target take-home pay, business expenses, tax, time off and non-billable hours.
How to use the Freelance Hourly Rate Calculator
- Enter the take-home pay you want a year, your annual business expenses and your estimated tax rate on profit.
- Enter the hours you work a week, the share that isn't billable (admin, sales, learning) and the weeks you take off.
- Read the minimum hourly and day rate, and the revenue and billable hours behind them.
Examples
Input
60000, 6000 expenses, 25% tax, 40 h/week, 25% non-billable, 6 weeks off, 8-hour day
Output
Charge at least 62.32 an hour (498.55 a day) to bill 86,000.00 a year over 1,380 billable hours
Input
45000, 3000 expenses, 20% tax, 30 h/week, 20% non-billable, 8 weeks off, 7.5-hour day
Output
Charge at least 56.11 an hour (420.81 a day) to bill 59,250.00 a year over 1,056 billable hours
Frequently asked questions
How is the rate calculated?
Profit before tax is take-home ÷ (1 − tax rate), and revenue is that profit plus expenses. Billable hours are hours per week × (1 − non-billable share) × (52 − weeks off). The hourly rate is revenue ÷ billable hours, and the day rate is that × the hours in a billed day.
Why is a freelance rate so much higher than a salary's hourly equivalent?
Employees are paid for holidays, sick days and time spent on admin, and their employer covers equipment, insurance and some taxes. As a freelancer you cover all of that from the hours you can bill, which are often only 50–75% of the hours you work.
What tax rate should I use?
Your effective rate on profit: total income tax plus self-employment or social contributions, divided by profit. Check last year's return or a local tax calculator. This is a rough guide, not tax advice.
Should I charge exactly this rate?
It's the minimum that meets your target if you stay fully booked. Add a margin for quiet months and late payers, and check what the market pays for your skills.