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How this calculator works
The calculator grosses up your desired take-home income and expenses for taxes, then divides the required annual revenue by your expected annual billable hours.
Useful scenarios
- A new freelancer setting a baseline hourly rate before accepting client work.
- A consultant checking whether current pricing supports time off and business expenses.
- A solo operator repricing work after AI tools increase delivery speed.
FAQ
Why is the recommended rate higher than the minimum?
The buffer helps cover sales time, client delays, scope creep, and weeks where billable work is lower than expected.
Should I charge hourly or project-based?
Use the hourly rate as your cost baseline even if you package work as fixed-price projects.