Hourly Rate Calculator

The hourly rate you need to charge to reach your income goal.

Hourly rate

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Day rate (8 hours)
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Billable hours a year
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How this was calculated
Runs in your browser. Nothing you type is sent anywhere.
About the Hourly Rate Calculator
Hourly Rate Calculator works out what a freelancer or consultant needs to charge per hour to reach an income goal. It counts only billable hours, after expenses and time off. That is why the answer is usually higher than a salary divided by 2,080 hours.
How to use it
  1. Enter the income you want before tax.
  2. Enter yearly business expenses.
  3. Enter the hours a week you can actually bill, not hours worked.
  4. Enter working weeks a year, after holidays and sick days.
Example
To earn $80,000 with $10,000 of expenses, billing 25 hours a week for 45 weeks (1,125 hours), you need to charge $80.00 an hour, or $640.00 for an 8-hour day.
Questions
Why count only billable hours?
Admin, sales, invoicing and learning take time you can't charge for. Most freelancers bill well under 40 hours a week.
Does it include tax?
No. The income goal is before tax, so set it high enough to cover what you'll owe.
How is the day rate worked out?
Hourly rate × 8 hours.