Skip to main content
Calcimator

Freelance Hourly Rate

Back-solve hourly rate from income goal, billable hours, utilization, and overhead.

Inputs

$

Results

Rate needed

$75.89

≈ 5 movie tickets

Billable hours / yr1,400
Gross at that rate$106,250.00
How to Use This Calculator
  1. Enter your Target Net / Owner Income — what you want to take home annually after expenses.
  2. Set Available Work Hours / Year — the total hours you could bill in a year (2,000 = full-time).
  3. Adjust Billable Utilization % to reflect how much of your time actually gets billed (70% is realistic for most freelancers).
  4. Set Overhead + Tax Buffer % to cover self-employment taxes, software, and other business expenses (25–35% is common).
  5. Read the Rate Needed output — this is the minimum hourly rate to achieve your income target; use it as your floor when quoting clients.

How the result changes with Available work hours / yr

Available work hours / yrRate needed
401$378.52
1,401$108.34
2,600$58.38
3,600$50.60

What each input means

Target net / owner income
What you want to pay yourself annually.
Available work hours / yr
Total hours you could work per year.
Billable utilization %
Share of hours actually billed.
Overhead + tax buffer %
Extra load for expenses and taxes.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Target net / owner income = 85000, Available work hours / yr = 2000, Billable utilization % = 70, Overhead + tax buffer % = 25 = 4 input(s) provided
  2. Calculate Rate needed
    Rate needed = need / (billable * util)
    75.89 = $75.89
  3. Calculate Billable hours / yr
    1400 = 1400
  4. Calculate Gross at that rate
    Gross at that rate = need / (billable * util)
    106250 = $106,250

Engine last updated . Checked against 3 independently-derived tests — how we verify calculators.

Related Calculators

The questions that sit next to this one — chosen by subject, including calculators filed under a different category.

Small Business

Freelance Rate Calculator

Calculate your ideal freelance hourly rate based on desired salary, expenses, taxes, and billable hours. Ensure you're pricing your services correctly.

Income Optimization

Freelance Rate Calculator

Compute the hourly rate you need to charge as a freelancer to hit your desired income. Accounts for self-employment taxes, health insurance, business expenses, and profit margin.

HR & Payroll

Billable Hours Calculator

Track billable vs non-billable hours and calculate weekly, monthly, and annual revenue. Optimize your billing rate.

HR & Payroll

Compensation & Income Calculator

Complete compensation calculator — convert hourly to salary, calculate overtime pay, determine freelance rates, estimate payroll taxes, and project Social Security benefits.

Business & Entrepreneurship

Freelance & Self-Employment Calculator

All-in-one freelance rate, self-employment tax, quarterly payments, and W2 vs 1099 comparison.

More in Business & Entrepreneurship.