Career calculator
Freelance Rate Calculator
Find the minimum billed hourly rate needed to fund income and business expenses.
Required hourly rate
$79.86/hr
How the freelance rate calculator works
A freelancer cannot normally invoice every working hour. Utilization represents the share left after marketing, administration, proposals, bookkeeping, and gaps between projects.
The revenue target combines desired owner income with annual business costs, then divides it by realistic billable hours rather than all available hours.
Worked example
An $80,000 income goal plus $12,000 expenses requires $92,000 revenue. At 48 weeks, 40 hours a week, and 60% utilization, billable time is 1,152 hours. $92,000 ÷ 1,152 = $79.86 per billable hour.
Assumptions and practical limits
Taxes, retirement savings, unpaid leave beyond the working-week input, profit margin, bad debt, and platform fees should be added to expenses or the target.
Utilization must be above zero and no more than 100%. Small utilization assumptions sharply increase the required rate.
Frequently asked questions
What is billable utilization?
It is the percentage of working hours you expect to invoice to clients.
Should taxes be an expense?
Include employer-side or business taxes you need revenue to cover; personal tax planning is separate.
Should I round the rate up?
Usually. A buffer helps cover scope changes, collection risk, and imperfect utilization.