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
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Enter a value for target annual income (after expenses) to see your result.
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.
Hourly Rate = (Target Income + Expenses) / (Billable Weeks × Hours per Week)
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.
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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.
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.
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.
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.