Freelance Hourly Rate Calculator
Underpricing is the freelancer's most expensive mistake. This calculator builds your rate from the ground up: target income, billable hours, expenses and margin — so the number you quote is the number you can live with.
How it works
The formula adds your target annual income to your annual expenses, applies a profit margin, then divides by your billable hours per year (billable hours per week × billable weeks). Billable hours are lower than working hours — administration, prospecting and meetings are not billable.
Worked example
Example: Target €60k, expenses €8k, margin 20%, 25 h/week × 46 weeks → ~€63/h.
Recommendations
- Be honest about billable hours: 25–30/week is already a strong year.
- Include software, insurance, accounting and equipment in expenses.
- A 15–25% margin is healthy — it funds growth, bad months and holidays.
Tips & advice
- Convert fixed-price projects into hourly equivalents before accepting.
- If you struggle to fill hours, lower utilization assumptions, not your rate.
- Revisit your rate every year — skills, market and costs all change.
Next steps & suggestions
- Price projects instead of hours with the Freelance Rate Calculator.
- Check your profitability with the Profitability Calculator.
- Compare with a salaried position using the Hourly Salary Calculator.
Freelance Hourly Rate Calculator
It is 100% free, private and requires no signup.
Try it nowFrequently Asked Questions
Between 20 and 30 billable hours a week is realistic after administration, prospecting and meetings. Use the billable hours model to price accordingly.
Yes. Software, insurance, accounting, equipment and non-billable time all cost money. Add them on top of your desired net income.
Yes — every calculator is 100% free, with no signup, no limit and no hidden cost.
No. All calculations run instantly in your browser. Your inputs are never sent to a server or saved.
They use standard financial formulas and are ideal for estimates. Actual figures can vary due to taxes, fees and local rules, so confirm critical numbers with a professional.
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