Calculate your ideal freelance hourly rate with overhead and profit margin analysis
Your target take-home income after taxes
Enter your desired annual income and billable hours. Be realistic about how many hours you can actually bill clients.
Add your overhead percentage (business costs), desired profit margin, and tax rate for accurate calculations.
Receive your ideal hourly rate plus daily, monthly, and annual rates with a complete breakdown of costs.
Factors in overhead, profit margin, taxes, and non-billable time for accurate rate recommendations.
Get hourly, daily, monthly, and annual rates to quote clients in whichever format suits the project.
See exactly how your rate is calculated with a transparent breakdown of all factors.
Billable hours are the hours you can actually charge clients for work. This is typically less than your total working hours because it excludes time spent on administration, marketing, and business development.
Overhead includes business expenses like software subscriptions, office space, equipment, insurance, professional development, and other costs of running your freelance business. A typical range is 20-40%.
Profit margin is the extra amount beyond covering expenses and income goals. It provides a buffer for slow periods, allows business growth, and builds savings. A 15-25% profit margin is common for freelancers.
Using 48 weeks accounts for vacation time and holidays (4 weeks off). Adjust based on your planned time off. Being realistic about working weeks ensures your rate adequately covers the full year.
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