Freelance Hourly Rate Target Calculator
Work backward from income goal to hourly rate.
Enter your values
ⓘ Live results
Results
- Target hourly rate
- $84.44
- Billable hours per year
- 1,200
- Gross revenue needed
- $101333.33
- Daily rate at 6 hrs billable
- $506.67
Quick answer
Target hourly rate is your income goal plus expenses and taxes, divided by billable hours per year.
rate = (income goal + expenses) / (1 - tax rate) / billable hours
How to use the Freelance Hourly Rate Target Calculator
- 1Enter the take-home income you want and yearly business expenses.
- 2Enter your effective tax rate and realistic billable hours.
- 3The rate accounts for the fact that not every working hour is billable.
Worked example
Using the values the calculator loads with:
Inputs
- Take-home income goal70000 $/yr
- Annual business expenses6000 $
- Effective tax rate25 %
- Billable hours per week25 hrs
- Working weeks per year48 weeks
Results
- Target hourly rate$84.44
- Billable hours per year1,200
- Gross revenue needed$101333.33
- Daily rate at 6 hrs billable$506.67
Frequently asked questions
Why is billable time less than total hours?
Admin, sales and unpaid work eat into the week — 20-30 billable hours is common for freelancers.
Should I round the rate up?
Yes, round up and leave room for slow months or scope creep.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.