How to calculate your freelance hourly rate
Employees are paid for every hour at work plus holidays; freelancers are paid only for billable hours. So start from the income you want and work backwards:
- Gross income before tax = desired take-home ÷ (1 − tax rate).
- Revenue needed = gross income + business expenses, plus an optional profit buffer.
- Billable hours = (52 − weeks off) × hours per week × billable %.
- Hourly rate = revenue needed ÷ billable hours.
Most freelancers bill 50–70% of their working time; the rest goes on sales, admin, invoicing and learning. Treat the result as your floor, then price above it based on your market and value. Converting from a job? Try the salary to freelance rate calculator.