Freelance Hourly Rate Calculator
Price freelance work with more confidence.
Estimate a sustainable freelance hourly rate based on income goals, non-billable time, expenses, and target utilization before you quote your next project.
Frequently Asked Questions
Why can I not just divide salary by 2,000 hours?
Because freelancers do not bill every working hour. Sales, admin, proposals, revisions, learning, and breaks all reduce billable utilization. A sustainable rate has to account for that reality.
What utilization rate is realistic for freelancers?
It depends on your niche, but many freelancers land somewhere around 50% to 70% billable utilization over a full year. If you ignore that, you will usually underprice your work.
Should business expenses be included in my hourly rate?
Yes. Software, hardware, subcontractors, insurance, accounting, and coworking costs all need to be covered by revenue before the remainder becomes your income.
Can this help with fixed-fee pricing too?
Yes. Even if you quote fixed fees, you still need an internal hourly benchmark to estimate scope, protect margin, and understand whether a project was priced well.
What should I do after I know my target hourly rate?
Track actual time against real projects. That feedback loop shows whether your quoted rates, utilization assumptions, and project scopes are working in practice.