Hourly Rate Calculator
Work out the hourly rate you need to charge to hit your desired income, after accounting for vacation time and business expenses.
How to use the Hourly Rate Calculator
Enter your desired annual income (what you want to take home before business costs).
Enter your billable hours per week and weeks of vacation/unpaid time off per year.
Enter your estimated annual business expenses (software, insurance, equipment).
The calculator shows the hourly rate you need to charge clients to reach your goal.
Hourly Rate Formula
Hourly Rate = (Desired Annual Income + Annual Expenses) ÷ (Billable Hours per Week × Working Weeks per Year)Example
- 1.Desired annual income: $60,000
- 2.Annual expenses: $6,000
- 3.Billable hours/week: 25, Working weeks/year: 48
- 4.Hourly rate = ($60,000 + $6,000) ÷ (25 × 48) = $55 per hour
Frequently Asked Questions
Frequently asked questions about the Hourly Rate Calculator
Why is billable hours less than 40 per week?+
Freelancers typically spend significant time on admin, marketing and finding clients that isn't billable. Most freelancers can only bill 20–30 hours per week even when working full-time.
What should I include in expenses?+
Include software subscriptions, insurance, equipment, coworking space, professional fees and any other recurring cost of running your business.