Hourly Rate Calculator

1. 01Enter your target incomeType the yearly income you want to take from the business.
2. 02Enter your billable hoursType the hours per year you can actually charge clients for, not the hours you work.
3. 03Add expenses and read the rateOptionally add yearly business expenses. The hourly rate you need updates as you type.

• Set a freelance rateFind the rate that reaches your income goal given realistic billable hours.
• Cover your costsInclude expenses so your rate pays for software, equipment, and other overheads.
• Sanity-check a quoteSee whether an offered rate can meet your yearly target.

• A freelancerA 60,000 target, 1,200 billable hours, and 6,000 of expenses give an hourly rate of 55.
• No expensesA 50,000 target over 1,000 billable hours works out to 50 per hour.
• Fewer billable hoursCutting billable hours raises the rate you need, because the same income is spread over less time.

The rate is the money you need to bring in divided by the hours you can bill: rate = (target income + business expenses) / billable hours. Adding expenses first means your rate covers costs before it pays you.

You enter a yearly target income, yearly billable hours, and optional yearly expenses. The tool returns the hourly rate. It assumes the figures are all for the same period (a year here) and that billable hours are realistic.

Leave expenses at 0 for a simple income-only rate, or add them to cover overheads. You can use monthly figures instead of yearly as long as income, hours, and expenses all use the same period.

The most common mistake is using hours worked instead of billable hours, which understates the rate. This tool does not add income tax, self-employment tax, or a profit buffer; build those into your target income or expenses. This is an educational estimate to help you plan and price, not financial, accounting, or tax advice. Check the figures against your own records or a qualified professional before a real decision.

The calculation runs in your browser on your device. Your numbers are never uploaded, stored, or shared, and closing the tab clears everything.

What are billable hours?

The hours you can actually charge clients for. Admin, marketing, and breaks are not billable, so billable hours are well below hours worked.

Should I include tax?

This tool does not add tax. Build the tax you expect into your target income or your expenses so the rate covers it.

Can I use monthly figures?

Yes, as long as income, hours, and expenses all use the same period.

Why is my rate higher than I expected?

Usually because billable hours are far fewer than hours worked, so the same income spreads over less chargeable time.

Is my data saved?

No. Everything runs in your browser and nothing you enter is stored.