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.
Read the method, example and limitations
Updated reference sections in this guide are in English.
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.