Free Freelance Hourly Rate Calculator

Most freelancers set their rate by copying someone else's number. That is how you end up working full weeks and still falling short. This calculator works backwards from the life you want: your target take-home pay, your real business costs, your tax bill and the hours you can actually bill.

Currency

Target take-home pay (per year)

Annual business expenses

Effective tax + self-employment rate

Working weeks per year

Working hours per week

Billable utilisation

Profit / reinvestment buffer

Results

Revenue needed before tax$91,666.67

Revenue incl. profit buffer$100,833.33

Total working hours1610 hrs

Billable hours per year1047 hrs

Suggested day rate (8 hrs)$770.82

Minimum hourly rate$96.35

How utilisation changes your rate

Admin, sales and unpaid revisions are why your billable percentage is never 100%. Every point you lose pushes the rate you must charge higher.

Utilisation	Billable hours	Required hourly rate
50%	805 hrs	$125.26
60%	966 hrs	$104.38
70%	1127 hrs	$89.47
80%	1288 hrs	$78.29

About the Freelance Hourly Rate Calculator

Why billable utilisation is the number that matters most

Sales calls, proposals, invoicing, bookkeeping, marketing and admin are all real work that no client pays for. Most solo freelancers land between 55% and 70% billable. Set this honestly: overstating utilisation by 15 points quietly undercharges you by roughly 20%.

Costs freelancers forget to price in

Software subscriptions, hardware replacement, accountancy fees, insurance, pension contributions, training, co-working space, bank charges and bad debt. Add them up annually and put the total in business expenses — otherwise they come straight out of your take-home pay.

Tax and the self-employment gap

Employees only see the employee half of payroll tax. Self-employed people pay both halves plus income tax, with no employer withholding. Use your effective combined rate, not your marginal band, and treat the reserve as untouchable money.

Turning an hourly rate into a day rate or project price

Multiply by eight for a day rate, then quote projects as a fixed price using your hourly rate as the floor. Clients buy outcomes, not hours, but your hourly floor is what stops a fixed-price project turning into unpaid overtime.

Frequently asked questions

Should I charge the same rate to every client?

The number this calculator gives you is a floor, not a ceiling. Rush work, high-liability work and enterprise clients with heavy process overhead should be priced above it.

How many working weeks should I enter?

Start with 52 and subtract holiday, public holidays and an allowance for sickness. 46 to 48 is realistic for most full-time freelancers.

What billable utilisation is realistic?

Around 60 to 70% for an established solo freelancer, and closer to 50% in your first year while you are still building a pipeline.

Is the profit buffer necessary?

Yes. It funds slow months, equipment, training and eventually growth. Without it, a single quiet quarter comes directly out of your take-home pay.

Does the calculator store my numbers?

No. Everything runs in your browser and nothing is uploaded or saved.

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