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Freelancer Hourly Rate Calculator

Calculate your optimal hourly rate as a freelancer

Additional Information and Definitions

Annual Income Goal

Enter the total amount you aim to earn in a year before taxes.

Annual Business Expenses

Include all business-related expenses such as software, equipment, and marketing.

Billable Hours Per Week

Estimate the average number of hours you can bill clients each week.

Weeks Worked Per Year

Estimate the number of weeks you plan to work in a year, accounting for vacations and holidays.

Desired Profit Margin (%)

Enter the percentage of profit you want to add to cover unexpected expenses and growth.

Determine Your Ideal Freelance Rate

Use this tool to calculate a competitive and sustainable hourly rate based on your expenses, desired income, and billable hours.

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Freelance Rate Calculation Terms

Key terms to understand when determining your freelance hourly rate.

Annual Income Goal:

The total amount you aim to earn in a year before taxes.

Annual Business Expenses:

Total of all business-related expenses such as software, equipment, and marketing.

Billable Hours:

The number of hours you can bill clients for work performed.

Profit Margin:

A percentage added to your costs to ensure profit and cover unexpected expenses.

Optimal Hourly Rate:

The final hourly rate you should charge to cover costs and achieve your income goals.

5 Surprising Factors That Influence Your Freelance Rate

Setting the right hourly rate as a freelancer involves more than just covering your expenses. Here are five factors you might not have considered.

1.Market Demand

The demand for your skills in the market can significantly impact your rate. Research the going rates for similar services in your industry.

2.Client Budget

Understanding your client's budget and financial constraints can help you tailor your rates to what is feasible for them while still meeting your needs.

3.Experience Level

Your years of experience and expertise level can justify higher rates. Clients often pay more for proven skills and a strong portfolio.

4.Geographic Location

Rates can vary greatly depending on where you and your clients are located. Consider regional cost of living and market rates when setting your price.

5.Additional Services

Offering value-added services such as project management or consulting can allow you to charge premium rates. Highlight these services to justify higher pricing.