How this freelance hourly rate calculator works
billable hours = working weeks × weekly hours × utilizationhourly rate = (salary + overhead) ÷ [(1 − tax buffer − profit margin) × billable hours]Overhead can include software, equipment, insurance, professional fees, training, marketing, coworking, payment processing, and benefits normally funded by an employer.
Understanding your result
The result is a floor under entered assumptions, not proof the market will accept the price. Project pricing also needs scope, risk, revision limits, payment terms, currency, collection loss, and value delivered.
Frequently asked questions
How many hours are truly billable?
Use working weeks after vacation and sick time, then reduce total hours for sales, proposals, administration, learning, and gaps. New freelancers often overestimate utilization.
Is the tax buffer a tax calculation?
No. It is a user-chosen pricing reserve. Actual federal, state, local, and foreign taxes require a jurisdiction-specific calculation.
Methodology & data sources
Important professional disclaimer
Educational pricing model only—not tax, legal, financial, employment, or contracting advice. Confirm taxes with a qualified professional and use a written client agreement.