Freelance Hourly Rate Calculator
Work out the hourly rate you actually need by starting from your target take-home income, overheads, holidays and realistic billable hours.
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Pricing Strategy for Freelancers, Consultants and Agency Operators
The most common freelance pricing mistake is dividing a salary target by 2,080 hours. Employees are paid for holidays, sick days, admin and training; freelancers are not. After subtracting vacation weeks and non-billable time — sales calls, proposals, invoicing, marketing, learning — most independent professionals bill between 55% and 70% of their working hours. Using the full-year figure produces a rate that guarantees a shortfall.
Overheads and taxes belong in the calculation from the start. Software subscriptions, hardware, insurance, accounting, coworking and subcontractors are real costs of delivering the work, and self-employment tax plus income tax can absorb a quarter to a half of gross revenue depending on jurisdiction and entity type. Adding both before dividing by billable hours gives a rate that survives contact with reality.
Treat the result as a floor, not a ceiling. Value-based pricing, fixed-scope project fees and monthly retainers usually earn more per hour than pure time billing because clients pay for the outcome, not the clock. Use the calculated rate to sanity-check any fixed quote: divide the fee by your realistic delivery hours and confirm you are above the floor before signing.
Frequently asked questions
Most solo freelancers land between 55% and 70%. Anything above 80% is rarely sustainable once you account for sales, admin, and unpaid revisions.