Freelance hourly rate calculator
What should you charge per hour? Start from the income you want, then add taxes, business costs, time off and the hours you can't bill, to get the minimum rate that actually pays you.
Minimum hourly rate
80 / hr
Day rate
383 / day
Revenue to bill
7,333 / month
Billable hours
1,104 / year
That rate assumes every billable hour is booked. Empty weeks between clients push the real number higher, which is why a steady pipeline matters as much as the rate itself.
How to use it
- Enter the take-home income you want for the year, after tax and business costs.
- Add up yearly business costs: software, equipment, insurance, accounting, coworking.
- Set aside a tax percentage. If you're unsure, 25 to 30% is a common starting point; check your local rules.
- Be honest about time off. Holidays, sick days and slow weeks are unpaid when you freelance.
- Estimate the billable share of your week. Admin, sales and invoicing usually eat 30 to 50% of it.
Then use the free pipeline calculator to see how many projects that rate needs each month, and the follow-up email templates to win more of them.
A good rate only pays if the hours are booked
SteadyPipe asks one question each week: who are you talking to about next month's work? Log leads and follow-ups in under five minutes and get warned before your pipeline runs dry. Free, no card.
Start freeFAQ
- How do I calculate my freelance hourly rate?
- Add your desired take-home income and yearly business costs, divide by (1 minus your tax rate) to get the revenue you need, then divide by your billable hours per year. Billable hours are working weeks times hours per week times the share of time you can actually bill.
- Why is my freelance rate so much higher than my old salary per hour?
- A salary covers paid holidays, sick days, equipment, taxes and hours spent on non-client work. As a freelancer you pay for all of that yourself and only earn during billable hours, so the same yearly income needs a much higher hourly rate.
- What percentage of freelance hours are billable?
- Many freelancers bill 50 to 70% of their working hours. The rest goes to finding clients, proposals, admin, invoicing and learning. If you're just starting out, assume the lower end.
- Should I charge hourly or per project?
- Use the hourly rate as your floor either way. For a fixed-price project, estimate the hours, multiply by this rate and add a buffer for revisions and scope changes.
- How do I keep enough billable hours booked?
- Keep outreach going even in busy months, follow up on every proposal and ask past clients about the next project. A simple weekly pipeline check stops gaps between clients from eating into your billable hours.