Freelance Rate Calculator
Calculate the hourly rate you need to hit your target income after taxes, expenses, and non-billable time.
- Required gross income
- 88000.00
- Billable hours per year
- 1150
Required gross = target net divided by (1 - tax rate), plus business expenses. Hourly rate = required gross divided by billable hours per year.
Tired of doing this by hand?
Timesheet tracks your hours automatically across iOS, Android, and the web, and turns them into invoices, exports, and reports. Free plan, no credit card required.
The freelance rate formula
Start with the net income you want to take home. Add back the tax you will pay so you end up at the same number after tax. Add your annual business expenses (software, coworking, accountant, hardware). That is your required gross income. Divide it by your realistic billable hours for the year, and you have the hourly rate you need.
Why your "real" rate is higher than you think
If you aim for €60,000 net and assume 40 hours per week × 52 weeks = 2,080 hours, you might think €29/hour is enough. But factor in 30% tax, €8,000 in expenses, and the reality that only 25 hours per week are actually billable, and the required rate jumps to around €77/hour.
Once you have a rate, track against it
Setting the right rate is half the battle. The other half is tracking which clients and projects actually hit it. Timesheet shows real-time earnings per project so you can spot the work that is paying off and the work that is not.