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Freelancer hourly-rate calculator

Find your minimum and recommended hourly rate and project rates, accounting for expenses, leave and taxes.

Fields marked with * are required.

The net amount you want to earn before expenses.
Yearly work costs such as tools, subscriptions and marketing.
Between 0 and 50; an approximate rate that raises your target revenue to cover taxes.
Between 0 and 90; time spent on marketing, admin and communication instead of paid work.
Number of paid days off during the year.
Expected number of days off for health reasons.
Total weekly working hours before deducting non-billable time.
Between 0 and 100; raises the recommended rate above the minimum.
Optional; used to price a specific project.

Find your minimum and recommended hourly rates while accounting for annual expenses, non-billable time, vacation, sick days, a tax reserve and your target profit margin.

Formula

Billable hours = (weekly hours × 52) × (1 − non-billable %) − (vacation + sick days) × hours per day. Required revenue = (income + expenses) ÷ (1 − tax %). Minimum hourly = required revenue ÷ billable hours.

When is this useful?

Useful when starting freelancing or repricing your services, or before negotiating with a client, to make sure your rates cover your expenses, leave and taxes.

Worked example

Target income: 36,000 + expenses: 4,000 → revenue before taxes ≈ 44,444
After 20% non-billable time and 25 days of vacation and sick leave: billable hours ≈ 1,464
Minimum hourly rate ≈ 30.36
With a 15% profit margin: recommended rate ≈ 35.72
A 200-hour project ≈ 7,143

Assumptions

  • 52 working weeks and 5 working days per week.
  • Income, expenses and the percentages you enter are annual figures.
  • The tax reserve is an estimate, not an official tax schedule.
  • Pension or health insurance contributions only count if you add them to expenses.
  • Results are estimates and depend on your inputs and circumstances.

Common mistakes

  • Forgetting non-billable time such as marketing and admin.
  • Ignoring vacation and sick days when pricing your hour.
  • Overlooking annual business expenses and the tax reserve.
  • Assuming every working hour is billable.

Frequently asked questions

What is the difference between the minimum and recommended rate?

The minimum covers your target income, expenses and taxes only, while the recommended rate adds a target profit margin on top.

Why is non-billable time deducted?

Because part of your time goes to marketing, client communication and admin, which is unpaid. Your paid rate must therefore cover those hours too.

Is the tax percentage a real obligation?

No, it is an approximate reserve. Tax obligations vary by country, so consult the relevant authorities to confirm yours.

Why does the project rate differ?

The project rate multiplies the recommended hourly rate by the project hours, showing you the impact of your rate on a specific project.

Methodology and review

The calculator computes annual billable hours after deducting non-billable time and leave, then divides the target revenue (income, expenses and tax reserve) by those hours. This page is reviewed periodically, and results are estimates that depend on your country laws and tax situation, so confirm figures with a qualified professional.

This result is an estimate for information purposes only and is not financial or tax advice. Verify your tax and legal obligations with the relevant authorities.

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