Freelance Hourly Rate Calculator

Start with your desired monthly net income, add taxes and fixed costs to get the gross revenue needed. Then divide by the number of billable hours per month. Finally, add a safety margin to cover vacations, sick days and slow months.

On average, a freelancer can bill 5-6 hours out of an 8-hour workday. The rest goes to admin tasks, emails, marketing, proposals and professional development. This calculator takes that difference into account.

Tax rates vary widely by country. In the US, self-employment tax is about 15.3% plus income tax. In the UK, rates range from 20-45%. If you are unsure, 25% is a reasonable starting estimate for most situations.

Yes, the calculated rate does not include sales tax (VAT/GST). If your jurisdiction requires you to charge sales tax, add it on top of your hourly rate when invoicing clients.

Review your rate at least once a year or whenever your costs change significantly. As you gain experience and expertise, your rate should increase to reflect the added value you provide to clients.

Compare your rate with market averages in your industry. This calculator includes an automatic comparison with market ranges for 10 professional sectors. The right rate depends on your experience, specialization, location and client type.

Platforms like Upwork and Fiverr take a percentage of every payment (typically 20%). This calculator accounts for that: if your ideal rate is $50/h and the platform takes 20%, you need to charge $62.50/h to actually take home $50. The calculation is automatic once you enter the fee percentage.

Vacation weeks reduce your effective billing months. With 4 weeks of vacation you work about 11 months a year, so your hourly rate must be higher to cover the same annual income. This calculator accounts for it automatically with the "Vacation weeks" slider.

Yes, if you want to build a retirement fund, emergency cushion, or invest regularly, the "Monthly savings goal" field adds that amount to your net income requirement. This way your calculated rate covers both your lifestyle and your financial goals.

The sensitivity table shows how your hourly rate changes when you vary billable hours per day and vacation weeks per year. It helps you understand the impact of working one more or fewer hour, or taking more time off. The highlighted cell matches your current parameters.

Enter your gross annual employee salary, and the calculator estimates your take-home pay as an employee. It then calculates the freelance hourly rate you would need to match that net income, factoring in lost benefits like paid vacation, employer retirement contributions, health insurance, and sick pay. The result tells you whether your current freelance rate earns you more or less than your salary.

Yes! After calculating, use the "Copy link" button to get a URL that contains all your parameters. You can bookmark it, send it to a colleague, or use it as a future reference. The link automatically reloads all your data. You can also use "Print / Save as PDF" to export your results.