Freelance Hourly Rate Calculator
Set a billing floor that covers income, expenses and payment fees.
Formula and assumptions
Annual · Minimum hourly rate = ((Annual take − home target + Annual expenses) × 1 ÷ (1 − Payment fee (%) ÷ 100)) ÷ (Billable hours per week × Working weeks per year). Day rate = ((Annual take − home target + Annual expenses) × 1 ÷ (1 − Payment fee (%) ÷ 100)) ÷ (Billable hours per week × Working weeks per year) × 8. Monthly billing target = (Annual take − home target + Annual expenses) × 1 ÷ (1 − Payment fee (%) ÷ 100) ÷ 12. Ten-hour estimate = ((Annual take − home target + Annual expenses) × 1 ÷ (1 − Payment fee (%) ÷ 100)) ÷ (Billable hours per week × Working weeks per year) × 10. Annual fee amount = (Annual take − home target + Annual expenses) × 1 ÷ (1 − Payment fee (%) ÷ 100) × Payment fee (%) ÷ 100. Billable utilization = Billable hours per week ÷ Working hours per week × 100.
Monthly · Minimum hourly rate = ((Monthly take − home target + Monthly expenses) × 12 ÷ (1 − Payment fee (%) ÷ 100)) ÷ (Billable hours per week × Working weeks per year). Day rate = ((Monthly take − home target + Monthly expenses) × 12 ÷ (1 − Payment fee (%) ÷ 100)) ÷ (Billable hours per week × Working weeks per year) × 8. Monthly billing target = (Monthly take − home target + Monthly expenses) × 12 ÷ (1 − Payment fee (%) ÷ 100) ÷ 12. Ten-hour estimate = ((Monthly take − home target + Monthly expenses) × 12 ÷ (1 − Payment fee (%) ÷ 100)) ÷ (Billable hours per week × Working weeks per year) × 10. Annual fee amount = (Monthly take − home target + Monthly expenses) × 12 ÷ (1 − Payment fee (%) ÷ 100) × Payment fee (%) ÷ 100. Billable utilization = Billable hours per week ÷ Working hours per week × 100.
Day rate assumes eight billable hours. Include tax reserves in your target if needed. Enter expenses for the same period as income.
This tool processes inputs in your browser. Calculator values are not stored or sent by this plugin.
Further reading: How to Start Freelancing with Zero Skills – Step-by-Step Guide
Related tools: Project Pricing Calculator · Salary-to-Hourly Rate Calculator
Page editor: Usman Arshad · Last edited: November 3, 2026
How to use this tool
Choose the relevant mode, enter Annual take-home target and complete the labelled fields. Use Calculate to review your result.
Worked example
Annual take-home target = 36000, Annual expenses = 9000, Payment fee (%) = 10, Working hours per week = 40, Billable hours per week = 25, Working weeks per year = 50.
Minimum hourly rate = 40.00 currency units · Day rate = 320.00 currency units · Monthly billing target = 4,166.67 currency units · Ten-hour estimate = 400.00 currency units · Annual fee amount = 5,000.00 currency units · Billable utilization = 62.50%.
These example values are illustrative.
Interpreting the result
Treat the hourly result as a billing floor. Rerun it with fewer billable hours to see the cost of a quiet month without reducing your income target.
Assumptions and limitations
Day rate assumes eight billable hours. Include tax reserves in your target if needed. Enter expenses for the same period as income.
Should administration count as billable time?
Include it in working hours. Count it as billable only when a client pays for that time.