Hourly Rate Calculator
Turn your income target into a billable hourly rate.
e.g. 1,200 for a full-time freelancer
Required hourly rate
$0.00
What this tool does
Work backward from the annual income you want, subtract your business costs, and divide by the hours you can realistically bill. The result is the hourly rate you should put on invoices.
How to use it
- 1Enter your target annual income (take-home).
- 2Add annual business costs such as software, insurance, and equipment.
- 3Enter the hours you expect to bill per year — be realistic, not the hours you work.
- 4The calculator returns your required hourly rate.
Worked example
Target $80,000 take-home, $12,000 costs, 1,200 billable hours → $92,000 ÷ 1,200 = $76.67 per hour.
Frequently asked questions
How many billable hours should I assume?
For a full-time freelancer, 1,000–1,400 billable hours per year is a common working assumption. The rest of the time goes to admin, marketing, and unpaid work.
Should I include costs in my rate?
Yes. If you ignore software, insurance, and downtime, your rate may look profitable but leave you short. Add real costs before dividing.
What if my rate seems too high?
Rate anxiety is common. Compare against a few public rate surveys for your market and seniority, and remember that the number you just calculated is the minimum — not a ceiling.
Turn the result into a real invoice
Create a professional PDF from your numbers in under two minutes.
Create an invoice