Hourly and freelance rate calculator
Start from the income you want, allow for costs and unbilled time, and see the hourly and day rate to charge.
Results
Hourly rate
0.00
The exact rate, before rounding up to a whole unit.
- Hourly rate
- 0.00
- Rounded up for quoting
- -
- Billable hours per year
- 0
- Day rate
- 0.00
- Revenue needed per year
- 0.00
- Revenue needed per month
- 0.00
- Hourly rate before margin
- -
- Weekly equivalent
- 0.00
- Monthly equivalent
- 0.00
- Annual equivalent
- 0.00
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For information only, not financial, tax or legal advice.
Last updated 2026-10-30. Method checked 2026-10-30. Methodology
Many freelancers set a rate by guessing what the market pays. This calculator starts from your own numbers instead. Enter the income you want for the year, your business expenses, the weeks you work, your weekly hours and the share of those hours a client can be billed for. The tool divides what you need to bill by the hours you can actually bill, then shows the hourly rate, the day rate and the revenue needed each month. You can add a tax reserve or a profit margin if you want them built in. A second mode converts a salary to an hourly equivalent, or an hourly rate to a yearly salary, which helps when you compare a job offer with contract work. It works in any currency and applies no country's tax rules.
How to use the Hourly and Freelance Rate Calculator
- Pick "Rate from income goal" and choose your currency.
- Enter the yearly income you want and your yearly business expenses.
- Enter the weeks you work, your hours per week and the billable share of those hours.
- Open the settings to add a tax reserve, a profit margin or a different day length. Tip: The billable share moves the rate more than any other input, so use a figure from your own time records if you have them.
- Read the hourly rate, the day rate and the revenue you need each month.
- To compare pay, pick "Salary and hourly conversion" and choose a direction.
Worked example
A freelance designer sets a rate. All figures are USD.
| Input | Value |
|---|---|
| Target yearly income | USD 60,000.00 |
| Yearly business expenses | USD 6,000.00 |
| Weeks worked per year | 48 |
| Hours worked per week | 40 |
| Billable share | 60% |
| Tax reserve | 25% |
| Hours per day | 8 |
Working hours = 48 x 40 = 1,920 hours Billable hours = 1,920 x 60% = 1,152 hours Revenue needed = (60,000 + 6,000) / (1 - 25%) = USD 88,000.00 Hourly rate = 88,000 / 1,152 = USD 76.39, so charge at least USD 77 per hour Day rate = 76.39 x 8 hours = USD 611.11 (from the unrounded hourly rate) Monthly revenue needed = 88,000 / 12 = USD 7,333.33 With no tax reserve the hourly rate is 66,000 / 1,152 = USD 57.29 With expenses of USD 8,000, no reserve and a 10% margin: base rate USD 59.03, with margin USD 64.93, day rate USD 519.44 Salary mode: USD 52,000 at 37.5 hours for 52 weeks = USD 26.67 per hour
- Billable hours per year
- 1,152
- Revenue needed per year
- USD 88,000.00
- Hourly rate
- USD 76.39
- Rounded up for quoting
- Charge at least USD 77 per hour
- Day rate
- USD 611.11
- Revenue needed per month
- USD 7,333.33
The day rate is worked out from the unrounded hourly rate of 76.3889, not from the 76.39 shown. Multiplying 76.39 by 8 would give 611.12.
How it is calculated
Billable hours = weeks worked x hours per week x billable share
Revenue needed = (target income + expenses) / (1 - tax reserve)
Hourly rate = revenue needed / billable hours
Day rate = hourly rate x hours per day
Salary to hourly = salary / (hours per week x weeks paid)
The method has one idea: the money you need has to be earned in the hours a client pays for. Start with the income you want and add your business expenses. If you set aside a tax reserve, divide by 1 minus that percentage so the amount left after the reserve still covers both. Then divide by your billable hours, which are your working hours multiplied by your billable share.
A profit margin, if you enter one, multiplies the hourly rate by 1 plus the margin. The day rate is the hourly rate multiplied by the hours in your day. Both are worked out from the exact hourly rate and rounded once at the end, which is why a day rate can differ by a cent from the rounded hourly figure times 8. The headline sentence rounds the hourly rate up to the next whole unit, because rounding down would leave you slightly short of the goal.
The salary mode divides a yearly salary by the hours worked in a year, which is hours per week times weeks paid. The daily figure assumes a 5 day week, the weekly figure divides by the weeks paid, and the monthly figure divides by 12. Going the other way, the yearly salary is the hourly rate times hours per week times weeks paid. The tool uses the hourly rate exactly as typed, so a rate that was itself rounded gives a slightly different salary.
The tax reserve is a percentage you choose. The tool holds no tax rates and does not know which taxes apply to you. It also leaves out sales tax, VAT and GST, so add those separately on your invoices if you charge them. Nothing here accounts for unpaid leave, late payments, or work that changes from month to month, so treat the output as a starting figure for planning a rate.
Frequently asked questions
How do I work out my freelance hourly rate?
Add the income you want to your business expenses. Divide that total by the hours you can bill in a year, not the hours you work. If you work 1,920 hours and bill 60% of them, you have 1,152 billable hours. Dividing 68,000 by 1,152 gives about 59 per hour. Skipping the billable share step is the most common reason a rate comes out too low.
What is a billable share, and what number should I enter?
It is the part of your working hours that a client pays for. The rest goes on finding work, quotes, invoicing, admin, learning and gaps between projects. Many freelancers land somewhere between 50% and 70%, and newer ones are often lower. Your own time records give the most reliable figure, so use those if you have them.
What does the tax reserve do to the rate?
It raises the revenue the tool says you need. With a reserve, the calculator divides your income goal plus expenses by 1 minus the reserve. A reserve of 25% turns 66,000 into 88,000. The percentage is your own choice. The tool does not know any tax rates, so check what applies to you with your tax authority or an accountant.
How do I turn an hourly rate into a yearly salary?
Multiply the hourly rate by your hours per week, then by the weeks you are paid. At 25 per hour, 40 hours and 52 weeks, that is 52,000 a year. An employee usually also gets paid leave, sick pay and benefits, while a contractor covers those costs from the rate. Keep that in mind when you compare the two figures.
Why is my salary converted to hourly and back not the same?
The hourly figure is rounded to the cent. A salary of 52,000 at 37.5 hours and 52 weeks is exactly 26.666 per hour, shown as 26.67. Multiplying 26.67 back out gives 52,006.50, which is 6.50 higher. The gap comes from rounding the hourly rate, and the calculator uses the rate exactly as you type it.
Guides for this tool
Sources
- US Bureau of Labor Statistics: Occupational Employment and Wage Statistics checked 2026-10-30
- IRS: Self-employed individuals tax center checked 2026-10-30