Determine your ideal hourly rate as a freelancer or consultant. Factor in your desired income, business expenses, and profit margin to calculate a sustainable rate.
Hourly Rate
Daily Rate (8h)
Monthly Income
Effective Annual Income
This calculator provides estimates and is for informational purposes only.
How It Works
Your hourly rate is calculated using this formula: Hourly Rate = (Desired Income + Annual Expenses) × (1 + Profit Margin ÷ 100) ÷ (Working Weeks × Hours per Week). This ensures your rate covers personal income, business costs, and leaves room for profit.
Working weeks accounts for vacation, sick days, and holidays. Most freelancers work 46–50 weeks per year. Hours per week should reflect only billable hours — typically 60–70% of total working hours for consultants who also spend time on admin, marketing, and business development.
Frequently Asked Questions
Why should I include a profit margin?
A profit margin ensures you're not just covering costs but building financial cushion for growth, emergencies, and retirement savings. A typical margin for freelancers is 10–25% on top of costs.
What expenses should I include?
Include all business-related costs: software subscriptions, insurance, equipment, office space or co-working fees, accounting services, self-employment taxes, and professional development. These directly impact what you need to charge.
How many billable hours should I plan for?
Full-time freelancers typically bill 25–30 hours per week, not 40. The remaining time goes to marketing, admin, invoicing, and client communication. Plan conservatively to avoid setting your rate too low.