How to use
- Enter the yearly take-home income you want and your yearly business expenses.
- Enter working hours per week, weeks worked per year and the percentage of time that is not billable.
- Read the hourly and day rate you need to charge.
Worked example: $80,000 take-home
Target $80,000 plus $10,000 of expenses is $90,000 of revenue. 40 hours × 48 weeks × (1 − 30% non-billable) = 1,344 billable hours.
Rate = $90,000 ÷ 1,344 = $66.96 per hour, or $535.71 for an 8-hour day. Raise the non-billable share to 40% and the rate rises to $78.13.
Frequently asked questions
What counts as expenses?
Self-employment tax, health insurance, software, equipment, retirement contributions, and anything an employer would otherwise cover.
What is non-billable time?
Admin, marketing, proposals and learning. 25 to 40% is common.
Why 48 weeks?
It leaves 4 weeks for vacation, sick days and holidays. Change it to match your plans.
How is the day rate computed?
Hourly rate × hours in a billable day, default 8.
Should I round the rate?
Most freelancers round up to a clean number; the calculator gives the floor.
Can I export?
CSV, Excel or copy.