How do I calculate my freelance hourly rate?
Add the take-home pay you want to your yearly business costs, gross it up for tax, then divide by the hours you can actually bill in a year: weeks worked × hours per week × your billable share.
Why is the billable share so low?
Most freelancers spend 30-40% of their time on sales, admin, invoicing and learning. Those hours earn nothing directly, so your rate on billable hours has to cover them.
Estimates only. Not tax, legal or financial advice. More free tools