Hourly Rate Calculator

Calculate Your Freelance Hourly Rate

This calculator helps freelancers, consultants, and independent contractors determine their hourly rate based on income goals, working hours, expenses, and taxes. It ensures you charge enough to meet your financial targets.

Features

• Target income-based calculation
• Billable hours percentage adjustment
• Vacation and time-off consideration
• Business expenses inclusion
• Tax rate calculation
• Profit margin buffer
• Multiple rate variations
• Detailed financial breakdown

Key Factors Explained

Pricing Strategies

• Value-based pricing: Charge based on value delivered, not just time
• Project pricing: Fixed price for entire project (hourly rate × estimated hours)
• Retainer pricing: Monthly fee for ongoing services
• Rush pricing: 50-100% premium for urgent work
• Package pricing: Bundled services at discounted rate
• Minimum project fee: Avoid small, unprofitable projects

Tips for Freelancers

• Review and adjust rates annually
• Track actual billable hours vs. estimates
• Increase rates for existing clients gradually (10-15% yearly)
• Charge premium rates for specialized skills
• Consider geographic location and market rates
• Don't compete on price alone - focus on value
• Build in buffer for scope creep and revisions
• Set different rates for different services

Common Expenses to Include

• Software subscriptions and tools
• Computer and equipment depreciation
• Internet and phone bills
• Professional development and courses
• Marketing and advertising
• Professional insurance
• Accounting and legal fees
• Co-working space or home office
• Health insurance (if self-employed)

Important Notes

• This calculator provides estimates for planning purposes
• Actual rates vary by industry, experience, and location
• Consider market rates in your field
• Be realistic about billable hours percentage
• Factor in payment delays and bad debts
• Consult with an accountant for tax planning
• Adjust rates based on client budget and project value