Hourly Rate Calculator
Find your ideal hourly rate. Enter your desired annual income, business expenses, and billable hours to see what you should charge.
Free Hourly Rate Calculator for Freelancers
The SmarterSources Hourly Rate Calculator helps freelancers, consultants, and independent contractors determine the right hourly rate to charge. Factor in your desired take-home income, business expenses, taxes, and realistic billable hours.
How to Calculate Your Hourly Rate
The formula: Hourly Rate = (Desired Income + Expenses + Taxes) / Billable Hours Per Year. Most freelancers underestimate expenses and overestimate billable hours. Be conservative: 1,000-1,500 billable hours per year is realistic for most freelancers.
What Counts as Billable Hours?
Billable hours are only the hours you can charge clients for. A 40-hour work week includes many non-billable hours: admin, invoicing, marketing, proposals, networking, professional development, and breaks. Typically only 60-75% of work time is billable.
Frequently Asked Questions
How many billable hours can I expect per year?
Most freelancers bill 1,000 to 1,500 hours per year. New freelancers may bill fewer hours while building their client base. Established freelancers can sometimes bill up to 1,800 hours.
Should I include taxes in my rate calculation?
Yes. As a freelancer, you pay self-employment tax (15.3% in the US) plus income tax. Budget 25-35% of revenue for taxes depending on your income level.
Is my data safe?
Yes. This calculator runs entirely in your browser. No data is sent to any server and nothing is stored.