Wage & salary tools
Freelance Hourly Rate Calculator
Estimate a billable rate that covers your income goal, business expenses, tax reserve, and profit margin.
Gross pay estimates
How to calculate it
Target revenue = [desired income ÷ (1 − tax reserve) + expenses] ÷ (1 − profit margin)
[$60,000 ÷ 0.75 + $6,000] ÷ 0.90 ÷ 1,200 hours = $79.63/hour
Know what the result includes
Use the right assumptions
The model first increases the personal income target to allow for the chosen tax reserve. It then adds expenses and allows for profit as a share of revenue. Divide by billable hours per year to get the target hourly rate. The reserve is a planning assumption, not a calculation of actual tax liability.
Frequently asked questions
What counts as a billable hour?
An hour that a client pays for. Leave room for admin, proposals, marketing, and other work that does not generate a direct charge.
Is the tax reserve a tax estimate?
No. You enter your own reserve percentage. Actual tax depends on your circumstances and jurisdiction. The tool does not calculate it.