Loan Freelance Hourly Rate Calculator
Work backwards from the income you actually want: this calculator turns your annual income goal, real billable hours, business expenses, and profit margin into the hourly rate you need to charge.
| Equivalent day rate (8 hrs) | $0 |
| Billable hours per year | 0 |
| Income + expenses to cover | $0 |
| Base rate (before profit margin) | $0 |
How it works
The math is simple: rate = (target income + annual expenses) ÷ annual billable hours × (1 + profit margin). Annual billable hours = billable hours per week × working weeks per year. The day rate is the hourly rate × 8, handy for project quotes.
Frequently asked questions
Why aren't my billable hours 40 per week?
Almost no freelancer bills 40 hours. Admin, marketing, proposals, bookkeeping, and downtime typically eat 30–50% of the week. Most freelancers bill 20–30 hours — 25 is a safe default.
When should I raise my rates?
Review yearly or whenever demand is steady and you're booked out. If more than ~70% of proposals close, you're likely underpriced. Raising rates 5–10% annually keeps up with costs.
What expenses should I include?
Everything the business costs you: software subscriptions, hardware, internet, phone, insurance, accounting, coworking or home-office costs, travel, and self-employment tax buffer. Don't forget to pay yourself for non-billable work.
💼 Turn that rate into paid invoices
Generate a clean, printable invoice in seconds with our free Invoice Generator.