Freelance Minimum Hourly Rate Calculator
Build a strict hourly price floor from your target take-home pay, business expenses, tax bracket, vacation weeks, and the split between billable and admin hours.
Inputs
Results
How this calculator works
- Enter your target annual take-home pay.
- Add yearly business expenses and your effective tax rate.
- Set working weeks, hours per week, and billable percentage.
- Get the minimum hourly rate that funds your goals.
Why this matters
Build a strict hourly price floor from your target take-home pay, business expenses, tax bracket, vacation weeks, and the split between billable and admin hours.
Frequently asked questions
How do freelancers calculate hourly rates?
Add desired take-home, taxes, and expenses, then divide by real billable hours—not total hours worked. Admin, marketing, and vacation reduce capacity.
What percentage of hours should be billable?
Many freelancers bill 50–70% of working time. The rest goes to proposals, bookkeeping, learning, and sales.
Should I quote hourly or project rates?
Use this hourly floor as a baseline, then package project quotes so you never fall below that effective rate.
How much vacation should freelancers plan?
Budget at least 2–4 weeks. If you do not price time off in, every vacation week silently cuts your annual income.