Freelancer Rate Calculator
Find the minimum hourly rate you need to charge to meet your income goal after accounting for overhead and non-billable time.
The take-home amount you want to earn per year before tax
Optional: software, internet, equipment, co-working space, etc.
Time spent on admin, sales, networking, and other non-client work. 20% is a common starting point.
Ready to invoice at your new rate?
BillingBee helps you create professional invoices and track payments in minutes.
How is the freelancer rate calculated?
The calculator works out your minimum viable rate — the lowest you can charge while still meeting your income target and covering costs.
Formula: Hourly rate = (Annual income target + Annual overhead) ÷ Total billable hours
Total billable hours accounts for your working schedule minus vacation time, then further reduced by the non-billable percentage (time spent on admin, business development, etc. that you can't charge clients for).
Why 20% non-billable time?
Most freelancers spend roughly 20% of their working time on activities they can't directly bill for — answering emails, sending proposals, accounting, learning, and marketing. New freelancers often underestimate this and underprice their work as a result.