Freelance Hourly Rate Calculator
Divide the yearly target by the hours you can actually bill. A 60,000,000 target at 25 billable hours a week over 46 weeks gives 1,150 billable hours. Add 25% for the hours nobody pays for — quoting, chasing invoices, admin — plus tools and insurance, and you must invoice 75,000,000, which is 65,217 an hour.
Your numbers
Hourly rate needed
65,217
Billable hours a year
1,150h
Amount to invoice
75,000,000
Formula
Hourly rate needed = Target yearly income × (1 + Non-billable overhead ÷ 100) ÷ (Billable hours a week × Weeks worked)
Of a 40-hour week, 20 to 30 hours are typically billable. Enter 40 and the rate lands around 60% of what you actually need. Take holidays and sick days out too: use 44 to 48 weeks, not 52. Handle tax by setting the target income before tax.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Target yearly incomeWhat you want to earn in a year; put it in before tax and the answer is before tax. | 60,000,000 | 0 and up |
| Billable hours a week (h)Hours a week you can actually invoice — usually 20 to 30 out of 40. | 25 | 0 ~ 80 |
| Weeks worked (wk)Weeks you actually work in a year, with holidays and sick days taken out. | 46 | 0 ~ 52 |
| Non-billable overhead (%)The uplift for unpaid time and running costs, added on top of the target. | 25 | 0 ~ 200 |
Step by step
Quick reference table
Results when only Target yearly income changes and everything else stays put.
| Target yearly income | Hourly rate needed | Billable hours a year (h) | Amount to invoice |
|---|---|---|---|
| 30,000,000 | 32,609 | 1,150 | 37,500,000 |
| 45,000,000 | 48,913 | 1,150 | 56,250,000 |
| 60,000,000 | 65,217 | 1,150 | 75,000,000 |
| 90,000,000 | 97,826 | 1,150 | 112,500,000 |
| 120,000,000 | 130,435 | 1,150 | 150,000,000 |
What each result means
| Result | At default values |
|---|---|
| Hourly rate neededWhat you have to charge per hour to land on the target. | 65,217 |
| Billable hours a year (h)Billable hours across the year — the number you divide by. | 1,150 |
| Amount to invoiceWhat you must actually invoice in a year once overhead is added. | 75,000,000 |
Common mistakes
Of a 40-hour week, 20 to 30 hours are typically billable. Enter 40 and the rate lands around 60% of what you actually need. Take holidays and sick days out too: use 44 to 48 weeks, not 52. Handle tax by setting the target income before tax.
Glossary
- Target yearly income
- What you want to earn in a year; put it in before tax and the answer is before tax.
- Billable hours a week
- Hours a week you can actually invoice — usually 20 to 30 out of 40.
- Weeks worked
- Weeks you actually work in a year, with holidays and sick days taken out.
- Non-billable overhead
- The uplift for unpaid time and running costs, added on top of the target.
- Hourly rate needed
- What you have to charge per hour to land on the target.
- Billable hours a year
- Billable hours across the year — the number you divide by.
- Amount to invoice
- What you must actually invoice in a year once overhead is added.
Frequently asked questions
Q. How is Freelance Hourly Rate Calculator calculated?
Hourly rate needed = Target yearly income × (1 + Non-billable overhead ÷ 100) ÷ (Billable hours a week × Weeks worked) — Divide the yearly target by the hours you can actually bill. A 60,000,000 target at 25 billable hours a week over 46 weeks gives 1,150 billable hours. Add 25% for the hours nobody pays for — quoting, chasing invoices, admin — plus tools and insurance, and you must invoice 75,000,000, which is 65,217 an hour.
Q. Can you walk through an example?
With Target yearly income 60,000,000, Billable hours a week 25h, Weeks worked 46wk, Non-billable overhead 25%, the answer is Hourly rate needed 65,217.
Q. What do I need to enter?
Enter Target yearly income, Billable hours a week, Weeks worked, Non-billable overhead. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Target yearly income moves the answer to Target yearly income 30,000,000 → Hourly rate needed 32,609 and Target yearly income 120,000,000 → Hourly rate needed 130,435. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Of a 40-hour week, 20 to 30 hours are typically billable. Enter 40 and the rate lands around 60% of what you actually need. Take holidays and sick days out too: use 44 to 48 weeks, not 52. Handle tax by setting the target income before tax.
Related calculators
Tax rates and interest conventions differ by country and product — check your contract for real transactions.