Freelancer Rate Calculator
Find the hourly, daily and weekly rates you need to reach your income goals while covering business expenses and non-billable working time.
Enter Your Business Details
Set your income target, expenses and available working hours.
Your Results Will Appear Here
Enter your income goals and working details to calculate your recommended freelance rates.
How to Calculate Your Freelance Rate
Your freelance rate should cover your desired personal income, business expenses and a financial buffer. It should also account for time spent on administration, marketing, communication and other non-billable activities.
Freelancer Rate Formula
Total Working Hours = Working Weeks × Working Hours per Week
Billable Hours = Total Working Hours × Billable Percentage
Required Annual Revenue = (Annual Income + Annual Expenses) × (1 + Profit Buffer)
Hourly Rate = Required Annual Revenue ÷ Annual Billable Hours
Full-Day Rate = Hourly Rate × Working Hours per Week ÷ 5
Full-Week Rate = Hourly Rate × Working Hours per Week
Full-day and full-week rates assume every scheduled hour in the quoted day or week is billable. The billable percentage accounts for non-billable time when calculating the required hourly rate.
Important Notes
This estimate depends on your income target, business expenses, profit buffer and billable time assumptions. It does not automatically calculate income taxes, holidays, unpaid gaps between projects or changes in workload. Review your assumptions when setting actual client rates.
Calculation Example
Suppose a freelancer wants $60,000 in annual income, has $6,000 in annual business expenses and sets a 10% profit buffer.
- Working schedule: 48 weeks × 40 hours = 1,920 hours.
- Billable time: 1,920 × 60% = 1,152 hours.
- Required annual revenue: ($60,000 + $6,000) × 1.10 = $72,600.
- Required hourly rate: $72,600 ÷ 1,152 = $63.02.
Frequently Asked Questions
What are billable hours?
Billable hours are the hours you can charge to clients. Administrative work, marketing, learning and client acquisition are common examples of non-billable activities.
Why should freelancers include business expenses?
Freelancers usually pay for their own software, equipment, internet, insurance, workspace and other operating costs. These expenses should be covered by their rates.
What is a profit buffer?
A profit buffer is an additional percentage added to your income and expense target to provide room for unexpected costs, savings or business growth. It is not a tax calculation.
Does this calculator include income taxes?
No. Tax rates and obligations vary by country and individual circumstances. Consider your applicable taxes separately when setting your final client rates.
Is the daily rate based on an eight-hour day?
The daily rate is calculated using your entered working hours per week divided by five working days. It is an estimate, not a fixed industry standard.