PRICE WITH CONFIDENCE
Your skills deserve
a sustainable rate.
Find an hourly rate that covers your income goal, business costs, and the hours you actually bill—not just the hours you work.
Your result
$57.29/hr
Based on 60% billable time and 48 working weeks per year.
These are base-rate equivalents, assuming every hour shown is billable. Actual billable work and income may vary.
RATE TO QUOTE, WITH YOUR FEE AND BUFFER
Remember: This estimate excludes personal income tax. Unless you add them above, it also excludes payment fees and a profit buffer.
A SIMPLE FORMULA
Know what goes into your rate
We add your target annual income to business expenses, then divide by the number of hours you expect to bill in a year.
Your numbers, step by step
- Required revenue: $60,000 income + $6,000 expenses = $66,000
- Billable hours: 40 hrs × 48 weeks × 60% = 1,152 hrs
- Hourly rate: $66,000 ÷ 1,152 hrs = $57.29/hr
This is a planning estimate, not tax or financial advice. Your actual rate may need to be higher depending on taxes, market demand, experience, and project risk.
How billable time changes your rate
Most freelancers can't bill every working hour—admin, sales, and learning take time. Here is your base rate at three billable levels, keeping your other numbers the same (before any fee or buffer you add).
| Billable share | Billable hours per year | Base hourly rate |
|---|---|---|
| 40% billable | 768 hrs | $85.94/hr |
| 60% billable | 1,152 hrs | $57.29/hr |
| 80% billable | 1,536 hrs | $42.97/hr |
Common questions
Is this rate before or after tax?
Your target income is treated as income before personal income tax, and the calculator does not estimate tax. Tax rules differ by country and situation, so check local rules or ask an accountant before finalizing a rate.
What counts as billable time?
Time you can charge a client for, such as project work or consulting calls. Admin, invoicing, finding clients, and learning are real work but usually unbilled, which is why billable time is often well below your total working hours.
Does the rate include platform or payment fees?
Only if you add one. Open "Optional: platform fee and safety buffer" and enter the percentage your platform or payment provider keeps. RateNest has no built-in fee, because fees vary by platform and sometimes by contract; check the platform's own current fee page. The calculator then shows the rate to quote so you still keep your base rate after the fee.
What is the safety buffer for?
A percentage added on top of your base rate to cover slow months, late payments, or profit. It starts at 0%, so choose a number that fits your situation.
Why is my result higher than an employee hourly wage?
Employees are paid for time off and non-billable hours, and employers cover many business costs. As a freelancer, your billable hours have to fund all of that.
Are my numbers saved or sent anywhere?
No. The calculation runs in your browser, and RateNest does not send or store the numbers you enter.