Complete guide: Freelance Hourly Rate
Updated:
Setting your freelance rate is not guesswork: start from your expenses, your savings goal and the hours you can actually bill. Many people calculate with 40 hours a week and 52 weeks, and end up undercharging. Billable hours are usually only 60–75% of working time: the rest goes to admin, sales and email.
The most common mistake is forgetting taxes. If you need 4,000 a month to live and save, and your tax rate is 25%, billing 4,000 is not enough: you need to bill 5,333 so that after taxes you keep the 4,000. This calculator makes that adjustment automatically and also adds a safety margin for slow months, equipment and training.
The result includes your hourly and daily rate (8 hours), the annual revenue you must bill and how much goes to taxes and to the margin. Use it as a floor: your final market rate should sit above this minimum.
How it works
- 1Annual base = (expenses + monthly savings) × 12.
- 2We adjust for taxes: base ÷ (1 − tax rate).
- 3We add the safety margin and divide by your annual billable hours.
- 4We show hourly rate, daily rate and required annual revenue.
Frequently asked questions
What tax percentage should I use?
Use your total effective rate (income tax + mandatory contributions). If you don't know it, 20–30% is a common conservative estimate.
What is the safety margin for?
It covers client-less months, unexpected expenses, equipment and training. 10–20% is typical.
How many billable hours are realistic?
Out of a 40-hour week, billing 25–30 is typical. The rest goes to admin and business development.