Hourly Rate Calculator

Work out the hourly rate you need to hit your income goal.

Billable hours per year1,380

Revenue needed$91,300.00

Day rate (8 hours)$529.28

Minimum hourly rate

$66.16

Your hourly rate has to cover far more than your take-home pay. Business expenses, unpaid admin time, holidays and a profit buffer all need to be built in.

This hourly rate calculator divides the revenue you need by the hours you can actually bill — usually far fewer than 40 per week.

Formula

Billable hours = Hours per week × Working weeks
Revenue needed = (Income + Expenses) × (1 + Profit %)
Hourly rate = Revenue needed ÷ Billable hours

Example

A $75,000 income goal with $8,000 of expenses and a 10% margin needs $91,300. At 30 billable hours for 46 weeks (1,380 hours) that is about $66.16 per hour.

Frequently asked questions

How many billable hours should I assume?

Many independent professionals bill 20–30 hours per week because marketing, admin and client communication take time.

Should I charge hourly or per project?

Hourly suits open-ended work; fixed project pricing rewards efficiency. Knowing your hourly rate helps price projects either way.

Does this include taxes?

Treat 'desired income' as pre-tax income. For an after-tax target use the freelancer rate calculator.