Freelance hourly rate calculator
Divide what you need to invoice in a year by the hours a client actually pays for. What you need to invoice is your take-home plus tax, expenses and payment fees.
Billable hours in a year at 25 a week for 46 weeks. Most freelancers bill far fewer than 2,080.
Your hourly rate
Estimate- Per hour
- USD 47.51
- Per day (8 h)
- USD 380.10
- Invoice in a year
- USD 54,639.18
- Payment fees, 3%
- USD 1,639.18
- Expenses
- USD 3,000
- Tax, 20%
- USD 10,000
- You keep
- USD 40,000
1,150 billable hours a year, about USD 4,553.26 to invoice each month.
Worked example
To keep USD 40,000 a year after 20% tax, USD 250 a month of expenses and 3% payment fees, with 25 billable hours a week for 46 weeks, charge at least USD 47.51 an hour, or USD 380.10 a day of 8 hours.
To keep EUR 60,000 a year after 30% tax, EUR 400 a month of expenses and 3% payment fees, with 30 billable hours a week for 46 weeks, charge at least EUR 67.62 an hour, or EUR 540.95 a day of 8 hours.
What the defaults assume
- Working weeks
- 46: four weeks of holiday and two of public holidays and sick days
- Billable hours
- 25 a week: the rest goes to sales, admin and learning
- Tax
- 20% of profit, one figure for every tax. Use your country calculator for the real one
- Payment fees
- 3%: a card or platform fee. Payout routes differ a lot, see the payout fees calculator
How the rate is worked out
Start from the money you want to keep in a year. Add the tax on it: at 20%, keeping 40,000 means earning 50,000 before tax. Add a year of expenses. Then add the share that payment fees take, so that after the fees the rest still covers everything.
Divide that yearly figure by your billable hours: working weeks times the hours a client pays for each week. The day rate is the hourly rate times the hours in your day.
Why billable hours matter most
A full-time job has about 2,080 paid hours a year. A freelancer who works the same 40 hours rarely bills more than 25 of them, and takes unpaid holidays. Divide by 2,080 hours instead of 1,150 and the rate comes out about 45% too low.
Turn the rate into a price
Clients compare prices, not hours. Once you know your floor, quote per project or per day where you can, and round up. Put the rate in a quote, then in an invoice with clear payment terms.
Questions
How do I calculate my freelance hourly rate?
Add your target take-home, the tax on it, a year of expenses and payment fees, then divide by the hours a client pays for in a year. With USD 40,000 take-home, 20% tax, USD 250 a month of expenses, 3% fees and 1,150 billable hours, the floor is about USD 47.51 an hour.
How many billable hours does a freelancer have?
Often 20 to 30 a week. Sales calls, proposals, invoicing, admin and learning take the rest. Over 46 working weeks, 25 hours a week is 1,150 billable hours a year.
What is a day rate?
The hourly rate times the hours in a working day, usually 8. A day rate is easier to sell for longer work, and it covers the small breaks an hourly log would miss.
Does the calculator include social contributions?
Only if you include them in the tax percent. Use one effective percent for everything you pay on profit. The country tax calculators show the real figures for Georgia, Kazakhstan, Armenia and Uzbekistan.
Is my data saved?
No. The calculation runs in your browser and the numbers stay in the page link, so you can bookmark or share it.
Not tax, legal or financial advice. Rules change and your case may differ; check with the authority linked above or an accountant before you act. Terms
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From rate to paid invoice
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