What should you really charge per hour?
Reverse-engineer your rate from your target income. Accounts for tax, expenses, vacation and billable utilisation — the way pros actually price.
Frequently asked questions
How is my freelance hourly rate calculated?＋
Your recommended rate is calculated by working backwards from your target net income: Total revenue needed = (income + expenses) ÷ (1 − tax rate). Then divided by annual billable hours = (52 − vacation weeks) × billable hours per week. Then multiplied by a profit buffer to cover scope creep and bad debt.
What's a realistic number of billable hours per week for a freelancer?＋
20-25 billable hours per week is realistic for most solo freelancers. The remaining 15-20 hours go to admin, marketing, sales calls, learning, and unexpected work. Beginners often overestimate billable hours at 35-40, which leads to undercharging.
What profit buffer should I add?＋
10-25% is the sweet spot for fixed-price freelance work. The buffer covers inevitable scope creep, late payments, bad-debt write-offs, and emergency client requests. Lower buffers risk eating into your effective rate; higher buffers can price you out of competitive bids.
Should I include taxes in my rate calculation?＋
Yes. The calculator asks for your effective tax rate (typically 20-30% in the US, 0-9% in the UAE, 20-45% in the EU). Without accounting for taxes, your 'target income' will fall short by roughly your tax bracket.
What's the difference between an hourly rate and a day rate?＋
The day rate is typically your hourly rate × 8. Many senior freelancers price by the day or project to discourage time-counting and to align with client procurement expectations. Both rates are shown on the calculator.