Freelancer/Consultant Hourly Rate Calculator
Find the hourly rate you need to charge to hit your income goal.
How the freelancer hourly rate works
This calculator finds the hourly rate a freelancer or consultant needs to charge to hit a target annual income, accounting for the reality that not every working hour is billable and that the business has its own expenses.
Enter your desired annual income, how many hours per week you can realistically bill (not just work — administration, sales and unpaid time don't count), how many weeks you work per year, and your annual business expenses. The calculator returns the hourly rate needed.
This is a baseline pricing floor, not a market-rate recommendation — it tells you what you need to charge to hit your income goal, not what the market will bear. Compare it against competitor rates before finalizing your pricing.
The formula
Hourly rate = (Desired income + Business expenses) ÷ (Billable hours/week × Weeks worked/year)
Add your desired income and annual business expenses together, then divide by your total billable hours for the year (billable hours per week times weeks worked per year).
Worked example
$80,000 target income, $5,000 expenses, 25 billable hrs/week, 48 weeks/year
Total billable hours = 25 × 48 = 1,200. Hourly rate = ($80,000 + $5,000) ÷ 1,200 ≈ $70.83/hour.
Frequently asked questions
Why isn't this just annual income divided by total work hours?
Because not every hour worked is billable — admin, sales, and unpaid downtime all reduce billable capacity. Using billable hours rather than total hours avoids underpricing.
Should I add profit margin on top of this rate?
This calculator solves for your target take-home income plus expenses — it doesn't add an additional profit buffer. Consider adding a margin for savings, taxes not otherwise accounted for, and unpaid time off.
How many billable hours per week is realistic?
Many freelancers find 20–30 billable hours per week realistic out of a 40-hour work week, once admin, sales and non-billable work are accounted for — the right number depends heavily on your business model.
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