How do I calculate my freelance hourly rate?

To calculate your ideal hourly rate, add your monthly living expenses, business costs, and tax obligations, then divide that total by your actual billable working hours.

Should I charge clients per project or per hour?

Charging per hour is great for maintenance or undefined tasks, while project-based pricing is better for clearly defined deliverables where you can charge for the value provided.

Strategy Tool

Hourly Rate
Calculator

Don't underprice yourself. Calculate the exact hourly rate you need to charge to hit your monthly income goals while covering taxes, expenses, and vacations.

Accounts for unbillable hours

Includes business expenses & taxes

Financial Goals & Costs

Desired Monthly Net Income

Monthly Business Expenses

Estimated Taxes (%)

Time & Availability

Billable Hours / Week

Weeks Worked / Year

Your Target Metrics

Gross Yearly Revenue Target: $31,058

Total Billable Hours/Year: 1,200 hrs

Minimum Hourly Rate:

$ 25.88

The Ultimate Guide to Pricing

The biggest mistake new freelancers make is calculating their hourly rate based on a standard 40-hour workweek (2,080 hours a year).

Why 40 Hours is a Myth in Freelancing:

Unbillable Time: You spend hours finding clients, sending proposals, and doing administrative work.
Vacations & Sick Leaves: Unlike traditional jobs, you don't get paid time off.

Frequently Asked Questions

Should I charge the exact rate the calculator gives?

The calculator gives your absolute minimum break-even rate. We recommend adding a 15% to 20% "Profit Margin" on top of this number.

Should I lower my rate for long-term clients?

Yes, it's common practice. Offering a 10% discount for a retainer contract is a win-win.