Planning estimate
Uses only the figures entered. This is a planning aid, not tax, legal, or financial advice.
Hourly Rate Calculator
Calculate an hourly freelance rate from income, costs, and billable hours.
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About Hourly Rate Calculator
Hourly Rate Calculator determines a sustainable freelance hourly rate based on personal target income, operating overheads, tax rate, and annual billable hours.
How to use Hourly Rate Calculator
- Enter annual target net income.
- Enter annual business operating expenses (software, equipment, insurance).
- Enter estimated tax allowance percentage and non-billable time percentage.
- Click Calculate to view required hourly billable rate.
Examples
Income Goal: £40,000.00, Expenses: £5,000.00, Tax: 25%, Billable Hours: 1000 hrs/yr Result: Target Hourly Rate: £60.00 / hour
FAQ
How many billable hours are in a standard working year?
A standard full-time year has 1,920 working hours, but typical billable client hours range between 900 and 1,200 hours after non-billable overhead.
Why add business expenses to target income?
Business expenses must be covered by client revenue before you draw personal income.