Hourly Rate Calculator

A simpler alternative to the full day rate model

The Day Rate Calculator models utilization, time off, and days versus hours in detail — useful when you're setting a considered, defensible rate. Sometimes you just want a quick number: given what you want to earn and roughly how much you work, what should the hourly rate be? That's what this calculator answers.

It adds your desired annual income to your estimated annual business overhead, then divides by your total billable hours for the year (hours per week multiplied by weeks worked). The result is a single hourly rate that, if billed consistently across all your billable hours, would cover both your income target and your running costs.

Billable hours vs. total hours worked

Be careful to enter billable hours, not total hours at your desk — time spent on proposals, admin, invoicing, and marketing isn't billable, even though it's real work. If you're not sure how much of your working time is actually billable, the utilization field in the Day Rate Calculator handles that distinction explicitly and may give a more realistic number.

Once you have an hourly rate, use it in the Project Quote Calculator to price a specific fixed-scope project, or check what it means after tax with the Freelance Tax Calculator.