Formula
Hourly rate = required annual revenue ÷ annual billable hours. Billable hours account for time off and non-billable work.
BUSINESS
Freelance Hourly Rate Calculator
Estimate a sustainable hourly rate from income goals and billable time.
CALCULATOR GUIDE
How to use the Freelance Hourly Rate Calculator
Convert an annual income goal, business costs, available weeks and billable utilisation into a freelance hourly rate.
Worked example
A $95,000 revenue requirement spread across 1,150 billable hours needs about $82.61 per hour before an extra buffer.
Assumptions and limits
Taxes, benefits, payment delays, currency changes and market pricing should be considered separately.
Frequently asked questions
What are billable hours?
Billable hours are the hours clients pay for, excluding administration, marketing, training and leave.
Should taxes be included?
Include required personal and business obligations in your income goal or buffer, using professional advice where appropriate.
How this calculator works
Enter your known values and select Calculate result. Review units and inputs before relying on the planning estimate.
Actual quantities, prices and requirements can vary. Confirm critical work with a supplier or qualified professional.