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Freelance Hourly Rate Calculator

Last updated: October 15, 2026

Estimate a sustainable freelance hourly rate from desired take-home income, expenses, taxes, billable hours and non-billable time.

Estimated minimum freelance hourly rate

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  • Required annual pre-tax revenue: —
  • Estimated annual billable hours: —
  • Estimated tax reserve: —
  • Suggested rate with 15% profit buffer: —
On this page

Quick summary: Estimate a sustainable freelance hourly rate from desired take-home income, expenses, taxes, billable hours and non-billable time.

Updated October 14, 2026 • Estimated reading time: 4 minutes
Read the method, example and limitations

Guide language: English. Updated October 15, 2026.

What this calculator estimates

Freelance Hourly Rate Calculator

Inputs and units

Use the units shown for Desired annual take-home income ($), Annual business expenses ($), Estimated income and self-employment taxes (%), Billable hours per week, Working weeks per year, Unpaid invoices and discounts (%). Required fields cannot be blank. Use zero only where that field and the model allow it. Select Calculate after changing a scenario.

Method and assumptions

Required collected revenue equals deductible annual expenses plus desired take-home divided by (1 - assumed tax rate). Required billings divide collected revenue by (1 - unpaid-invoice allowance). Divide billings by billable hours per week times working weeks. The tax reserve applies to net earnings after expenses.

Worked example

To keep 80,000 after an assumed 20% tax and cover 20,000 in expenses, collect 120,000. For 1,000 billable hours, charge 120 per hour; with 20% uncollected billings, charge 150 per hour.

Limitations

The tax percentage is an assumed effective rate on net business earnings. Expenses are assumed deductible. Actual income tax and self-employment tax require their own rules; this tool does not calculate them. The 15% buffer is only a comparison illustration.