Freelance hourly rate calculator

Why most freelancers undercharge

A 40-hour week is not 40 billable hours. Emails, proposals, invoicing and learning are real work that no client pays for directly. If you divide your income goal by every hour you work, the rate comes out too low, and the gap shows up at the end of the year.

Check what your projects actually pay

This calculator gives you a floor. The next question is whether each project clears it. A fixed-price job that ran long can quietly pay half your rate. Track hours against each project and compare: (what you were paid − project costs) ÷ hours logged.

Questions

Is the income figure before or after tax?

Before tax. Enter the gross amount you want to earn in a year; your income tax is paid out of it. VAT or sales tax is different: you add it on top of each invoice, so leave it out of the rate.

How do I turn the hourly rate into a project price?

Estimate the hours the project will take, multiply them by your rate, then add a buffer for revisions and calls. The calculator shows a 20% buffer as a starting point.

Should I show my hourly rate to clients?

Not always. Many freelancers use the hourly rate privately to set day rates and project prices, and quote those instead. The hourly number is your internal check.

What if the result is much higher than what clients pay?

Look at the inputs before lowering the rate. A higher billable share, fewer tools or a niche with bigger budgets often closes the gap. Charging below your floor means working more hours for the same year.

Is anything I type saved or sent?

No. The calculator runs in your browser and does not store or send the numbers you enter.

Read the full guide: how to calculate your freelance hourly rate