How to set a freelance rate
Start from income and realistic billable time.
1
Set income target
Use the gross amount you need before tax.
2
Add business costs
Software, insurance, equipment and accounting.
3
Be realistic about hours
Most freelancers bill 20–30 hours in a full week.
What does this tool do?
A freelance rate has to cover business costs, unpaid admin time, tax and the income you need. This calculator starts from an annual income target and the realistic number of billable hours.
The Formula
Hourly rate = (Income target + Annual costs) ÷ (Billable hours/week × Working weeks)Frequently Asked Questions
Why not divide salary by 2,080 hours?
Freelancers have unpaid admin, sales, holiday and sick time. Billable hours are usually much lower than a full-time clock.
Should I charge different rates?
Yes. Urgency, complexity, usage rights and client size can justify different rates; the calculated figure is your floor.