How the Freelance Hourly Rate Calculator Works
The calculator annualizes your desired monthly take-home income and expenses. It then estimates the gross revenue needed to cover expenses and leave the target amount after the selected tax reserve.
Formula and method
Required annual revenue = annual business expenses + (desired annual take-home income ÷ (1 − tax reserve rate)). Hourly rate = required annual revenue ÷ (billable hours per week × working weeks per year).
Practical tips
Use realistic billable hours. Administrative work, marketing, proposals, revisions, and client communication are often not billable. Revisit the rate when expenses or workload change.
Important limitations
The reserve percentage is an editable planning assumption, not a tax calculation. The tool does not model tax brackets, social contributions, VAT/sales tax, retirement savings, unpaid invoices, or local rules.