Business

Hourly rate calculator

Suggest a freelance hourly rate from income goal, expenses, and billable hours.

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  1. 1 Enter the monthly amount you want after business expenses.
  2. 2 Enter monthly expenses you have not already included.
  3. 3 Enter realistic billable hours, not every hour in the month.
  4. 4 Use the result as a floor, then round it for a quote.

How it works

A day rate that feels fine can underpay you once unpaid admin and expenses are included. Enter the monthly income you want to keep, monthly business expenses, and how many hours you can actually bill. The suggested rate is (income + expenses) divided by billable hours. Tax you still have to pay should be inside the income goal or the expenses.

Hourly rate = (monthly income goal + monthly expenses) / billable hours.

Frequently asked questions

Why not 160 hours?

A full-time month has about 160 working hours, but meetings, sales, and revisions are often not billed. Many freelancers bill closer to 80–120 hours.

Does this include GST?

No. If you charge GST, add it on top of this rate with the GST calculator.