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Hourly Rate Calculator

Calculate exactly how much to charge per hour to hit your income goals.

Calculate Your Ideal Hourly Rate

$

What you want to earn after taxes and expenses

$

Software, insurance, equipment, marketing, etc.

%

Include income tax + self-employment tax (~15.3%)

Realistic: 20-30 hrs/week (not all work time is billable)

52 minus vacation, holidays, sick days (typically 46-50)

How to Calculate Your Hourly Rate

Hourly Rate = (Income + Expenses) ÷ (1 − Tax Rate) ÷ Billable Hours

This formula ensures you earn your desired take-home income after covering all business expenses and taxes.

Average Hourly Rates by Industry

Industry Beginner Experienced
Cleaning Services $25-$40 $40-$75
Handyman $40-$60 $65-$100
Graphic Design $35-$65 $75-$150
Web Development $50-$85 $100-$200
Photography $50-$100 $150-$300
Consulting $75-$150 $150-$400
Bookkeeping $30-$50 $60-$100

Frequently Asked Questions

How do I calculate my hourly rate?
Hourly rate = (Desired annual income + Annual expenses + Taxes) ÷ Billable hours per year. Most freelancers can bill 1,000-1,500 hours annually—the rest goes to admin, marketing, and time off.
How many hours can I actually bill?
Realistically, 50-60% of your work time is billable. If you work 40 hours/week, expect 20-25 billable hours. That's roughly 1,000-1,300 billable hours per year after vacation and holidays.
Should I charge by the hour or by project?
Both have pros/cons. Hourly is simpler and protects against scope creep. Project-based rewards efficiency and provides cost certainty for clients. Many use hourly internally to price projects.
What if my rate seems too high?
Your rate may feel high because you're comparing to employee salaries. Remember: you pay self-employment tax (15.3%), buy your own insurance, have no paid time off, and cover business expenses. $50/hr freelance ≈ $35,000 salary.
How do I raise my rates?
Give existing clients 30-60 days notice. Apply new rates to new clients immediately. Raise rates when demand exceeds capacity. Typical approach: 5-15% increase annually or when renewing contracts.
What's the average freelance hourly rate?
Varies widely by industry: Writers $30-$100/hr, Designers $50-$150/hr, Developers $75-$200/hr, Consultants $100-$300/hr, Coaches $100-$500/hr. Location and experience matter significantly.

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