Free Hourly Rate Calculator
Find out what to charge per hour to hit your income goals. No signup required.
How to calculate your hourly rate
Your hourly rate has to cover your target income, taxes, and business expenses — but you only bill a fraction of the hours you actually work. Pricing off your full-time hours is the fastest way to undercharge.
The formula
Rate = (target income + annual expenses) ÷ billable hours. Billable hours = working weeks × hours per week × your billable percentage — not 100% of your time.
Worked example
Target $80,000 income + $15,000 expenses, working 48 weeks × 40 hours at 70% billable → 1,344 billable hours. Rate = $95,000 ÷ 1,344 ≈ $71/hour— well above the ~$46/hour you'd get by dividing $95,000 by all 2,080 worked hours.
Don't forget
Self-employment tax, health insurance, software, and non-billable admin all come out of this rate. Build them into your target so the number you charge is the number you keep.
Hourly rate FAQ
How do I calculate my hourly rate?
Add your target salary and annual business expenses, then divide by your billable hours (working weeks × hours per week × your billable percentage). The calculator above does this for you.
What hourly rate should I charge as a freelancer?
Enough to cover your target income, taxes, and expenses across only your billable hours — not all worked hours. Most solo operators bill 60–70% of their time, so the rate has to absorb the non-billable rest.
How many billable hours are in a year?
A full-time year is about 2,080 hours, but after time off and non-billable admin and sales, most solo pros bill 1,000–1,400 hours. Use your realistic billable percentage, not 100%.
Should I include taxes and expenses in my rate?
Yes. Self-employment taxes, software, insurance, and overhead all come out of your rate. Build them in, or your take-home will fall well short of the headline number.
How do I raise my rates?
Raise them on new clients first, tie increases to results or scope, and give existing clients advance notice. Undercharging is the most common freelancer mistake.
Hourly vs. project pricing?
Hourly protects you on open-ended work; fixed-project pricing rewards efficiency and is easier for clients to approve. Many pros use their hourly rate as the basis for project quotes.
Want to automate your invoicing, estimates, and job costing?
HelmarOps tracks your billable hours, generates invoices, and shows real-time revenue dashboards.
See Pricing