Hourly rate calculator

What hourly rate do you need?

Enter what you want to earn in a year, your business costs and how much time you can bill. The calculator divides what you need to bring in by the hours you can bill.

This is a rough guide, not financial, tax or legal advice. For taxes, ask an accountant or your tax authority.

The formula

Hourly rate = (target yearly income + yearly business costs) ÷ (billable weeks × billable hours a week)

With the example numbers: ($80,000 + $6,000) ÷ (46 × 25) = $86,000 ÷ 1,150 hours, which is about $74.78 an hour. Change any number above to see your own.

The rate is a floor: the least you'd need to charge to reach your target with these numbers. Check it against what clients pay for your kind of work. To find your real billable hours, track all your time, billable and not, for a few weeks.

The guide walks through each step, from taxes to raising your rate. How to set your freelance hourly rate →

Questions

What should I put as my target income?

What you want your business to earn in a year before tax, including what you'll set aside for taxes. How much to set aside depends on where you live and your situation, so ask an accountant or your tax authority.

Why not 52 weeks and 40 hours?

Few freelancers bill every week of the year or every hour they work. Holidays, sick days, admin, sales and finding new clients all take time you can't bill. Track all your time for a few weeks to find your own numbers.

Is this the rate I should charge?

It's the least you'd need to charge to reach your target with these numbers. What clients pay for your kind of work, your experience and the value you bring all matter too.

This is a rough guide, not financial, tax or legal advice. Tally doesn't know your situation. Tally pricing →