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Hourly & Freelance Billing Rate Calculator

Determine your sustainable client billing rates based on take-home income, tax reserves, overheads, and billable capacity.

Career Archetypes & Practice Profiles
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Income Goals & Capacity

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Billing Rate Recommendations

Minimum Hourly Rate$121Day Rate: $968 / 8-hr
Annual Gross Revenue Goal$141,578Monthly: $11,798 / mo

Revenue Allocation Breakdown

Net Salary Take-Home:$80,000
Tax Reserve Allocation:+$31,111
Business Overheads:+$12,000
Required Annual Billing:$141,578
Calculator guide

How to use the Freelance Hourly Rate Calculator

Calculate a sustainable freelance hourly rate from income goals, expenses, taxes and billable hours.

01Set inputsChoose values, units and assumptions.
02Apply the modelRequired gross income = Net income ÷ (1 − tax rate). Required revenue = Gross income + overhead, adjusted by the profit buffer. Hourly rate = Required revenue ÷ annual billable hours.
03Read the resultCheck the output against the assumptions before using it.
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What this calculator does

The model starts with the freelancer’s desired take-home income, reserves an estimated tax amount, adds annual overhead and a business buffer, then divides the required revenue by realistic billable hours.

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Formula & method

Required gross income = Net income ÷ (1 − tax rate). Required revenue = Gross income + overhead, adjusted by the profit buffer. Hourly rate = Required revenue ÷ annual billable hours.

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Assumptions & notes

  • Tax rates are user assumptions and are not jurisdiction-specific tax advice.
  • Billable hours exclude non-billable sales, administration and downtime.
  • The displayed day rate is based on an 8-hour day.
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