Result
How to use this calculator
Enter the annual take-home income you want, the tax buffer you should hold (30% is a common default for US freelancers), your working hours per week, working weeks per year, and the share of hours that is actually billable. The calculator works backwards to the hourly rate you must charge.
The formula
Billable hours = hours/week × weeks/year × billable %. Required gross income = target take-home ÷ (1 − tax rate). Hourly rate = required gross income ÷ billable hours. Non-billable time (sales, admin, learning) is why 60% billable is a realistic default.
Example
Target $60,000 take-home with a 30% tax buffer requires $85,714 gross. At 40 hours/week, 48 weeks, 60% billable = 1,152 billable hours → $74.40 per hour.
FAQ
What is a good freelance hourly rate?
One that covers your target take-home after taxes and non-billable time. Most freelancers underprice by ignoring that 30-50% of working hours are never billed — this calculator builds that in.
Why add a 30% tax buffer?
Freelancers pay both halves of FICA (15.3%) plus income tax, with no employer withholding. Setting aside roughly 25-35% of every payment prevents tax-season shocks.
What billable percentage is realistic?
For solo freelancers, 50-70% is typical. The rest goes to finding clients, proposals, invoicing, and admin — work that keeps the business alive but generates no invoice.
Should I charge hourly or a flat project rate?
Hourly protects you on open-ended work; flat rates reward efficiency and are easier for clients to approve. Use your calculated hourly rate as the floor for pricing either way.