Freelance hourly rate calculator
Target income, costs and billable hours, as an hourly rate.
FreeRuns in your browserNo signupUpdated 2026-10-29
Admin, sales, learning and unpaid revisions are not billable. Most freelancers land between 50% and 75%.
Hourly rate
$85
Minimum to hit your target
Day rate
$682
8 billable hours
Billable hours per year
1,196
26 per week over 46 weeks
Rate at other utilisation levels
| Utilisation | Billable hours / year | Hourly rate |
|---|---|---|
| 50% | 920 | $111 |
| 60% | 1,104 | $92 |
| 70% | 1,288 | $79 |
| 80% | 1,472 | $69 |
| 90% | 1,656 | $62 |
| 100% | 1,840 | $55 |
Summary
Target income $90,000 + costs $12,000 = $102,000 to invoice per year 46 working weeks × 40 hours × 65% utilisation = 1,196 billable hours Hourly rate: $85 Day rate (8 hours): $682 Revenue needed per month: $8,500
About this tool
How it works and how to read the result.
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See the serviceWhat it does
A freelance hourly rate calculator works backwards from the income you want to the rate you need. Enter the annual income you want to take home, your yearly business costs, the weeks you will not work, your hours per week and the share of those hours you can bill. It returns the hourly rate, a day rate and the number of billable hours in the year, plus a table showing how the rate changes at other utilisation levels. Everything runs in your browser.
How to use it
- Enter the annual income you want before personal tax.
- Add your business costs for the year: software, equipment, insurance, accountant, co-working, marketing.
- Enter the weeks you take off, including holidays, sick days and public holidays.
- Enter the hours you work in a normal week, then set utilisation to the share of those hours that is billable.
- Read the rate and compare the table before you quote.
How to read the result
Suppose you want 90,000 a year and your costs are 12,000, so you need to invoice 102,000. You take six weeks off, leaving 46 working weeks. You work 40 hours a week and bill 65% of them, which is 26 billable hours a week, or 1,196 in the year. Divide 102,000 by 1,196 and the rate is 85 an hour, with a day rate of about 682.
The table shows what the same target needs at other utilisation levels. At 50% the rate climbs to 111; at 80% it falls to 69. If your pipeline is uncertain, price nearer the 50% figure and treat anything above it as margin. If you have a steady retainer that fills most of your week, the 80% figure is realistic.
The monthly revenue line, 8,500 in this example, is the figure to track. If a month comes in well under it, you either billed fewer hours than planned or your rate is too low for the hours you have.
If you need more capacity than one person can bill, our dedicated team service provides developers on a monthly basis. To turn hours into a delivery date, try the project timeline estimator.
Questions
Frequently asked.
What is utilisation and why does it matter?
Utilisation is the share of your working hours you can actually bill. The rest goes on proposals, admin, invoicing, learning and unpaid revisions. Most freelancers bill 50% to 75% of their hours. Assuming 100% is the most common reason a freelance rate comes out too low.
Should I charge by the hour or by the project?
Use the hourly rate to price projects, even if the client never sees it. Estimate the hours, multiply by your rate, and quote a fixed figure with a defined scope. Clients prefer certainty and you get paid for efficiency. Keep hourly billing for open-ended support or retainer work.
How do I convert a salary to a freelance rate?
Start with the salary, add the benefits an employer would have paid, such as pension, insurance and paid leave, then add your business costs and allow for unbilled time. The result is usually 1.5 to 2 times the salary divided by 2,000 hours. The calculator does this with your own numbers.
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