Freelance hourly rate calculator
Find the hourly rate you actually need to charge — accounting for unbillable time, weeks off, business expenses, platform fees, and a tax set-aside.
Tax rules vary by country — the set-aside is a planning buffer, not tax advice.
How the math works
1. Take-home goal + expenses = what your business must clear. 2. Gross it up for the tax set-aside, then for the platform fee (fees come off the top of billings). 3. Divide by true billable hours — weeks worked × billable hours per week. The result is the minimum average rate across your billable time; most freelancers quote 10–20% above their minimum to absorb slow months.
Frequently asked questions
How do I calculate my freelance hourly rate?
Start with your target annual income, add business expenses, then divide by your true billable hours: working weeks per year times billable hours per week. Finally, gross it up for platform fees and set-asides like tax — the calculator above does all of this for you.
Why is my required rate so much higher than an employee salary?
Freelancers only bill a fraction of their working time (marketing, admin, and gaps are unpaid), cover their own expenses, tools, insurance, and time off, and often pay platform fees of 5-20%. A common rule of thumb is that a freelance rate needs to be 1.5x to 2x the equivalent employee hourly wage.
How many billable hours per week is realistic?
Most full-time freelancers realistically bill 20-30 hours per week even when working 40+, because admin, proposals, and client communication are unpaid. New freelancers often bill less while building a client base.
Should I include platform fees in my rate?
Yes. If you find clients through platforms like Upwork (10%) or Fiverr (20%), the fee comes out of your earnings — so your listed rate needs to be higher to hit the same take-home. Use our platform fee calculator to see exact costs per platform.