Freelance hourly rate calculator
Work backward from the pay you want to the hourly rate you need, after time off, unbilled hours, expenses and taxes.
The calculator
How it works
- Profit you need. Your take-home pay plus the buffer, grossed up for taxes. With a 28% set-aside, $70,000 take-home needs about $97,000 of profit before the buffer.
- Revenue you need. That profit plus your business expenses.
- Billable hours. Working weeks times hours per week times your billable share. 46 weeks at 40 hours and 60% billable is 1,104 hours, not 2,080.
- Your rate. Revenue divided by billable hours.
The billable share is the number most people get wrong. Nobody pays you for the hour you spent chasing an invoice. (Although Kibble's late payment reminders make that hour shorter.)
Sanity checks before you send a quote
- Compare with the market. If your number is far below what peers charge, raise it. If it's far above, look at expenses and billable hours first.
- Plan for a lumpy year. Freelance income rarely arrives evenly. See Budgeting on an uneven income.
- Check your tax rate. Try the quarterly tax calculator with your expected profit.
- Revisit it yearly. Costs go up. Your rate should too.
Once the rate is set, Kibble tracks hours by client, turns them into PDF invoices from your own email, and shows profit and the next tax payment on one screen.
Questions people ask
What percentage of my hours will be billable?
Many freelancers bill 50 to 70 percent of their working hours. The rest goes to finding clients, email, invoicing and admin. If you are new, start lower.
What tax rate should I use?
Use the share of your profit you set aside for taxes. Many US freelancers use 25 to 30 percent, but it depends on your income and state. Our quarterly tax calculator can give you a better number.
Should I charge by the hour or by the project?
Either works. Even for fixed-fee projects, knowing your hourly floor tells you whether a price is worth it: estimate the hours, multiply by your rate, then add room for surprises.
Is my information saved?
No. The math runs in your browser and nothing is sent anywhere.
Still scratching your head?
Send us a note and a real person will get back to you.