Freelance hourly rate calculator
Most new freelancers copy the hourly pay from their last job and wonder why the money runs out. Put in the income you want to take home and see the rate that really gets you there.
Why your freelance rate has to be higher than your old wage
A salaried job pays you for about 2,080 hours a year whether every hour is busy or not. As a freelancer you only get paid for the hours a client buys. Sales calls, admin, invoicing and learning are all unpaid.
On top of that your employer used to pay half of your payroll taxes, your equipment and your paid holiday. When you price your own hour, all of that moves into your rate.
How to use the number
Treat the result as your floor. Quote above it when the work is urgent, specialised or tied to a result the client cares about.
If the rate looks impossible for your market, the fix is usually more billable hours, a narrower niche that pays more, or packages priced on the outcome.
Questions people ask
How do I calculate my freelance hourly rate?
Add the yearly take-home you want to your yearly business costs, gross that up for tax, then divide by the hours you can really bill in a year after time off.
How many billable hours does a freelancer work?
Fewer than they work. Many freelancers bill 20 to 30 hours in a 40 hour week, because the rest goes on sales, admin and learning.
Should I charge hourly or per project?
Start hourly to learn how long work takes, then move to project or package prices once you can estimate well. Packages reward you for getting faster.
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