Calculate your freelance or consulting hourly rate based on target annual income, taxes, business expenses, and profit margin. Visual income breakdown. Free online tool.
This free online hourly rate calculator helps freelancers, consultants, and contractors determine how much to charge per hour to achieve their target income. It accounts for taxes, monthly business expenses, and a profit margin buffer. All calculations happen in your browser — no data is sent to any server.
Add your target annual income, annual business expenses, and desired profit buffer together. Divide this total by your annual billable hours (work weeks × hours per week). This gives your minimum hourly rate to achieve your goals.
A typical profit margin buffer for freelancers ranges from 10% to 25%. This covers unexpected costs, sick days, vacation time, professional development, and provides a safety net.
Most freelancers cannot bill every working hour due to administrative tasks, client communication, and business development. Consider using 20–30 billable hours per week as a more realistic baseline, or adjust your work weeks to account for non-billable time.
No. Many freelancers use tiered pricing: a higher rate for rush jobs or complex projects, and a standard rate for regular ongoing work. This calculator provides your baseline minimum — you can adjust upward based on project value and client budget.