Simple target
You want $60,000 a year and can bill 1,200 hours.
Hourly rate is $50.
That is a clean starting point for pricing.
Freelance Hourly Rate Calculator
Use this when you want a rate that can actually support your income goal instead of guessing a number that feels safe.
Inputs
Freelance Hourly Rate Calculator
Set an hourly rate that matches your income goal.
Result
Suggested hourly rate
If billable hours is 0, we return 0.
Hourly rate
$500.00
Your income goal spread across billable hours.
Quick take
A quick read before you calculate
Use this when you want a rate that can actually support your income goal instead of guessing a number that feels safe.
Price for the hours you can sell
A useful freelance rate has to cover the hours you can invoice, not the hours that disappear into admin and prep.
Example snapshot
Price for the hours you can sell
Target
$60k
→
Billable
1,200h
$50/hr
Formula
Freelance hourly rate formula
Examples
2-3 real scenarios to make the result easier to trust.
FAQ
Clear answers to the questions people usually ask first.
Formula
Freelance hourly rate formula
Hourly rate = Target income ÷ Billable hours.
If your billable time is limited, your hourly rate has to carry the full income target.
Examples
Fewer billable hours
You want $72,000 a year and can only bill 900 hours.
Hourly rate is $80.
Less billable time means each hour has to earn more.
Part-time capacity
You want $36,000 a year and can bill 600 hours.
Hourly rate is $60.
Useful when freelance work is only part of your income.
When to use
Use it when quoting freelance work, planning a retainer, or checking whether a project will realistically pay the bills.
Common mistakes
- Using all working hours instead of billable hours.
- Forgetting taxes, admin, and downtime in the target income.
- Pricing from a competitor rate without checking your own capacity.
FAQ
What counts as billable hours?
Only the hours you can actually invoice or charge for, not admin, marketing, or unpaid prep.
Should I round the result?
Usually yes. Round to a rate you can explain and quote confidently.
Next step
Need quotes and invoices to stay in sync?
QuickBooks or Xero can help you keep your quotes, invoices, and expenses aligned as your rate changes.
Recalculate whenever your billable hours or income goal changes.