Calculator
Freelance rate calculator
Work backward from your annual income target to find an hourly rate that covers your expenses, benefits and unpaid time. Already have a rate? Estimate your annual income instead. Then compare it with the freelance hourly rates list.
How to calculate your freelance hourly rate
Add your annual income target, business expenses and benefits budget. Divide that total by the hours you can bill: (52 − weeks off) × billable hours per week.
Hourly rate = (income target + expenses + benefits) ÷ annual billable hours
Example: replacing an $80,000 salary
With an $80,000 income target, $6,000 in business expenses and $10,000 for benefits, you need $96,000 in revenue. Taking six weeks off and billing 25 hours per week gives you 1,150 billable hours. That works out to $83.48 per hour before personal income taxes. These are example inputs, not a recommended budget.
How is annual income estimated?
In income mode, annual revenue = hourly rate × billable hours per week × months worked × 4.3. This uses approximately 4.3 weeks per month. At $65 per hour, 30 billable hours per week and 11 months worked, the estimate is $92,235 in gross annual revenue.
How do I calculate a consulting fee?
Use the hourly calculation as your cost floor, then define the engagement. For example, a $100 hourly rate and a six-hour billable day give a $600 day fee. A 40-hour project with a 15% contingency gives a $4,600 starting quote: $4,000 for the estimated work plus $600 for uncertainty. These are illustrative inputs, not market benchmarks.
A retainer needs a clear monthly scope: reserved hours, recurring deliverables or a defined response commitment. It should also state what happens to unused capacity and work outside the agreement. See our consulting fees and rates comparison for role benchmarks and examples of each pricing model.
Should I divide my salary by 2,080 hours?
That assumes 40 paid hours every week for 52 weeks. Freelancers also spend time finding clients, preparing proposals and running their business. Enter only hours you expect to bill, and include holidays and gaps between projects in your time off.
Is the result my take-home pay?
No. The rate calculation covers your stated income target and budgets; the income calculation shows gross revenue. Neither estimates taxes. Your actual costs, tax obligations and market rates determine what you need to charge and what you keep.
Ready to discuss your quote? Use our rate negotiation email examples to prepare for the conversation.
Compare against real rates
Compare your target with community-submitted rates: