Finance & money·Payroll Salary

Freelance Rate Calculator

Calculate the minimum hourly rate you need to charge as a freelancer or consultant. Enter target income, expenses, and billable hours to get your floor rate.

Added May 6, 2026

Input

Target annual income (after expenses)

Annual business expenses

Billable weeks per year

Billable hours per week

Result

Enter a value for target annual income (after expenses) to see your result.

How it works

Calculates the minimum hourly rate a freelancer or consultant needs to charge to meet their income target after accounting for business expenses and non-billable time such as holidays, admin, and business development.

Formula

Hourly Rate = (Target Income + Expenses) / (Billable Weeks × Hours per Week)

Target Income: Annual take-home income goal
Expenses: Annual business costs (software, insurance, equipment)
Billable Weeks: Weeks per year with billable client work (52 minus holidays and admin)
Hours per Week: Average client-billable hours per working week

Step by step

01Add your target annual income to your expected annual business expenses.
02Estimate how many weeks per year you can realistically bill clients (typically 44–48).
03Estimate average billable hours per week (typically 25–35 for full-time freelancers).
04Divide total needed by total billable hours to get your minimum hourly rate.

Examples

$80k income, $12k expenses, 46 weeks, 30 hrs

To take home $80,000 while covering $12,000 in expenses, billing 30 hours per week across 46 weeks, you need to charge at least $67 per hour.

Inputs

Target annual income (after expenses):: 80000
Annual business expenses:: 12000
Billable weeks per year:: 46
Billable hours per week:: 30

Result

Minimum hourly rate:: 67.39
Monthly billing target:: 7667

Note: This is your floor rate — not your market rate. Research what clients in your niche typically pay before setting your price. Don't forget to account for self-employment tax (SE tax), which can add 15% on top of income tax in the US. Billable weeks is typically 44–48 for full-time freelancers (allowing for holidays, sick days, and unpaid gaps).

Frequently asked questions

How many billable weeks should I use?

Most full-time freelancers bill for 44–48 weeks per year. Subtract public holidays (1–2 weeks), vacation (2–4 weeks), sick days, and business development time. 46 weeks is a reasonable starting point.

What counts as a business expense?

Common freelance business expenses include software subscriptions, accounting software or accountant fees, health insurance premiums, professional development, equipment depreciation, coworking space, and business banking fees.

Should I add self-employment tax to this rate?

Yes. In the US, self-employed individuals pay 15.3% SE tax on net earnings. A common approach is to gross up the target income by this amount, or to simply set aside 25–30% of income for all taxes.

Is this my price or my minimum?

This is your floor — the minimum needed to cover costs and hit your income target. Your actual rate should reflect market demand, your experience level, and the value you deliver to clients.