Try “wedding”, “budget”, “etsy” or “invoice”.

Freelance Hourly Rate Calculator

Work backwards from what you want to take home, and see the hourly rate that actually gets you there.

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Freelance rate Pink cells are yours to edit
B12=B11/B10
ABC
Your numbers
Software, equipment, fees
Share of profit for taxes
Holidays, sick days, slow weeks
Paid client time only
Results
Working weeks46
Billable hours per year690
Revenue you need$42,000.00Costs are deductible, so tax applies to profit only
Minimum hourly rate$60.87
Half-day rate (4 hrs)$243.48
Monthly revenue target$3,500.00
Freelance rate+ Google Sheets Invoice Template & Client Tracker

Estimates for planning and education only, not financial or tax advice. Always check current platform fees and your own numbers.

Why your freelance rate is higher than a salary rate

As a freelancer you pay your own taxes and business costs, and not every hour is billable. Emails, admin and finding clients take time too. This calculator counts only paid client hours and weeks you actually work.

Business costs are deductible, so tax is worked out on your take-home goal only, and your costs are added on top. With the defaults ($30,000 take-home, $2,000 of costs, 25% for tax, 46 working weeks at 15 billable hours) you need $42,000 of revenue, which is a minimum rate of about $60.87 an hour.

Using the result

The minimum hourly rate is a floor, not a target. Many freelancers quote project prices or monthly retainers built from this number, which is easier for clients to say yes to.

The formulas behind it

Every result cell is a plain spreadsheet formula, so you can check the math or rebuild it yourself.

CellResultFormula
B9Working weeks=52-B5
B10Billable hours per year=B9*B6
B11Revenue you need=B2/(1-B4%)+B3
B12Minimum hourly rate=B11/B10
B13Half-day rate (4 hrs)=B12*4
B14Monthly revenue target=B11/12

Questions people ask

How many billable hours should I plan for?

Plan for fewer than you think. Part-time freelancers with a job often bill 10 to 20 hours a week. Full-time freelancers commonly bill 20 to 30 hours, since the rest goes to admin and sales.

How much should I set aside for taxes?

It depends on where you live and your total income. Many US freelancers set aside 25% to 30% as a starting point. Our 1099 and self-employment tax calculator gives a closer estimate.

How do I turn a salary into a freelance hourly rate?

Do not divide the salary by 2,080 hours. Add your business costs, gross it up for tax, then divide by the hours you can actually bill in a year, which is usually far fewer than 40 a week.

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