Tools
Hourly Rate Calculator
Work out your freelance bill rate and cost per hour from your income goal, billable hours, and overhead. Free, instant, no signup.
Your inputs
Set your income goal and availability to find your ideal rate.
Your hourly rate
$89/hr
Minimum to hit your income goal
How this hourly rate calculator works
We take your desired annual take-home income and work backwards to find your minimum bill rate — the price you charge clients per hour. First, we add your overhead percentage (taxes, insurance, software, business expenses) to find your gross revenue target. Then we divide by your total billable hours per year (working weeks × billable hours per week) to get your minimum cost per hour as a freelancer.
Key assumptions
- Billable hours ≠ total hours. Most freelancers can bill only 60–70% of their working time. The rest goes to admin, marketing, and client communication.
- Overhead includes: self-employment tax (~15.3% in the US), income tax, health insurance, software subscriptions, equipment, and professional development.
- Working weeks: 48 weeks accounts for 4 weeks of vacation/sick time. Adjust to match your lifestyle.
Frequently asked questions
What is a bill rate?+
Your bill rate is the hourly price you charge a client. It has to cover your take-home pay plus all overhead — taxes, software, insurance, and non-billable time — otherwise you are losing money on every hour worked.
How do I calculate cost per hour as a freelancer?+
Add up every business cost for the year (taxes, tools, insurance, equipment, professional development) and divide by your realistic billable hours. That number is your minimum break-even cost per hour — anything you charge above it is profit.
What's the difference between bill rate and pay rate?+
Pay rate (or take-home rate) is what lands in your bank account per hour. Bill rate is what the client pays you. Bill rate is always higher because it has to absorb taxes, overhead, and non-billable time.
What hourly rate should I charge as a beginner freelancer?+
Start from your target annual income, not from what others charge. Use this calculator: enter your income goal, working weeks, realistic billable hours (usually 50–70% of working hours), and overhead (30–40% is typical in the US). The calculator gives you the minimum rate to hit your goal.
Are billable hours the same as working hours?+
No. Most freelancers bill only 60–70% of their working time. The rest goes to admin, marketing, proposals, and client communication. Always plan your bill rate around billable hours, not total hours.