Hourly Rate Calculator
Calculate the hourly rate you need to charge as a freelancer or contractor to meet your income goals, with creator-service presets for copywriters and designers.
Last updated: 2026-03-06
Hourly rate calculator
Enter your work details
Enter your desired salary, hours, and expenses to calculate your hourly rate.
Hourly Rate
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Enter your desired salary and work details to calculate your hourly rate.
Calculation History (0)
Example calculations
Tap an example to prefill the calculator with sample values.
Full-Time Freelancer
$80K salary, 40 hrs/wk, $10K expenses, 20% margin
A freelancer replacing a full-time salary with equivalent benefits.
Result: $54/hour
Part-Time Consultant
$50K target, 20 hrs/wk, $5K expenses, 25% margin
A part-time consultant working half-time hours.
Result: $72/hour
Senior Developer
$150K salary, 35 hrs/wk, $15K expenses, 30% margin
An experienced developer transitioning to freelance work.
Result: $128/hour
Retainer Copywriter
$90K salary, 24 hrs/wk, $7K expenses, 25% margin
A copywriter balancing research, interviews, revision time, and client communication.
Result: $105/hour
Day Rate — Agency Contractor
$120K salary, 40 hrs/wk, $8K expenses, 25% margin, 6hr day
An agency contractor quoting day rates with 6 billable hours per day. Toggle to 'Day Rate' to see the primary display.
Result: $480/day
UX/UI Designer Day Rate
$120K salary, 28 hrs/wk, $12K expenses, 30% margin, 6hr day
A designer using a focused billable day while leaving room for reviews, workshops, and handoff.
Result: $766/day
How hourly rate calculation works
This calculator helps freelancers and contractors determine the hourly rate needed to meet their income goals after accounting for expenses and desired profit margin.
Formula: Hourly Rate = (Desired Salary + Expenses) × (1 + Profit Margin%) / Billable Hours
Key factors:
- Billable hours — Not all work hours are billable. Account for admin, marketing, and learning time
- Expenses — Software, equipment, insurance, accounting, and other business costs
- Profit margin — Buffer for taxes, savings, and business growth (20–30% is common)
- Weeks per year — Subtract vacation and sick time (48–50 weeks typical)
Most freelancers undercharge because they compare to employee salaries without accounting for self-employment taxes (~15.3%), health insurance, retirement, and unpaid time off. This calculator helps set a sustainable rate.
Hourly rate FAQs
Answers to common freelancer rate questions.
Why is the hourly rate higher than my salary divided by hours?
As a freelancer, you pay self-employment tax (~15.3%), health insurance, retirement contributions, and business expenses that employers normally cover. You also need to account for non-billable time (admin, marketing, invoicing) and unpaid time off.
What should I include in expenses?
Include software subscriptions, equipment, insurance (health, liability), accounting/legal fees, office costs, internet, professional development, and any other recurring business costs.
What profit margin should I target?
20–30% is a common target. This covers self-employment taxes (~15.3%), provides a buffer for slow periods, and funds business savings. Higher margins give more financial security.
How many billable hours should I plan for?
Most freelancers can bill 60–75% of their working hours. With 40 hours per week, expect 25–30 billable hours. The rest goes to admin, marketing, proposals, and professional development.
When should I quote a day rate instead of hourly?
Day rates work well for on-site consulting, workshops, or project-based work where clients prefer flat daily pricing. Use the Day Rate toggle above to see your equivalent daily rate. You can also adjust hours/day to reflect your actual billable day length (e.g. 6 hours for a focused consulting day).
Why do the copywriter and designer presets use fewer billable hours?
Service businesses rarely bill every working hour. Research, revisions, internal reviews, presentation time, project management, and client communication all reduce billable capacity. The presets bake that reality in so your rate target is less likely to be underpriced.
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Disclaimer
This calculator provides a starting point for freelance pricing. Your actual rate should factor in market rates, experience level, specialization, and client budgets.
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