Freelance Rate Calculator
The hourly rate that funds your target income. e.g. “What hourly rate covers $60,000 take-home?”
Enter your values
Results update as you type. All calculation happens in your browser.
Methodology
The hourly rate that funds your target income. This tool uses a standard, documented formula and runs entirely on your device.
Last reviewed January 2026 · Runs client-side
Setting an hourly rate that actually works
A sustainable freelance rate is not a number that feels right; it is the figure that funds the income you need after tax, expenses, and the unpaid hours every business absorbs. This calculator works backward from those inputs to the rate they demand.
The result is often higher than people expect, precisely because it accounts for the time you cannot bill and the tax you have to reserve.
How to use this calculator
- Enter the take-home income you want and your yearly business expenses.
- Set a tax reserve and how many hours you realistically bill each week.
- Add your working weeks per year and read the hourly rate it requires.
What the inputs mean
- Billable hours / week
- Only the hours you actually invoice, not total hours worked, which include admin and marketing.
- Tax reserve
- The share of income set aside for tax. Confirm the right figure for your jurisdiction.
To take home $60,000 with $8,000 of expenses, a 25% tax reserve, and 25 billable hours across 46 weeks, the required rate is about $79 an hour.
The formula, in plain terms
Add income and expenses, divide by one minus the tax reserve to gross up, then divide by your yearly billable hours.
Frequently asked questions
Why divide by billable hours, not all hours?
Because non-billable time earns nothing. Dividing by total hours would set your rate far too low to hit your target.
Should I add a buffer?
Yes. The result is a floor. A margin on top absorbs slow months without dropping below your target income.
Last reviewed January 2026. This explainer is general information, not professional advice.