Freelance Rate Calculator
Translate an annual income goal and business expenses into an hourly revenue rate based on billable time.
Suggested hourly rate before tax
Before personal tax. No country-specific tax, sales tax, pension or employment-benefit rules. Buffer is a revenue markup, not a target profit margin. All entered annual amounts use the same currency.
Formula checked · NumberSwift · Review process
For informational purposes only. Results are estimates and do not constitute financial advice.
How this calculator works
Your annual revenue must cover both the income you want to retain before personal tax and the business expenses you enter. Divide that total by annual billable hours, not all hours worked, to get the minimum revenue rate. Add a chosen percentage buffer to compare an adjusted rate. Administration, marketing, holidays and unpaid work reduce billable capacity; enter a realistic billable-week schedule instead of assuming every working hour generates revenue.
Formula
Billable hours = billable hours/week × working weeks/year. Minimum hourly rate = (income goal + annual business expenses) ÷ billable hours. Buffered rate = minimum × (1 + buffer/100).
Assumptions & limitations
Before personal tax. No country-specific tax, sales tax, pension or employment-benefit rules. Buffer is a revenue markup, not a target profit margin. All entered annual amounts use the same currency.
Worked example
A 60,000 income goal plus 12,000 expenses needs 72,000 revenue. At 25 billable hours for 48 weeks, annual billable time is 1,200 hours and the minimum rate is 60. A 15% buffer gives 69 per billable hour.
Our approach to calculations ↗Common questions
Should I enter all hours I work?
No. Enter hours you expect to invoice. Nonbillable work still takes time but does not directly create hourly revenue.
Is the suggested rate after tax?
No. It is a before-tax revenue estimate. Tax and benefit arrangements require separate planning.
Is a 20% buffer the same as a 20% profit margin?
No. The tool adds 20% to the baseline revenue rate. Margin measures profit as a share of the resulting price and uses a different denominator.