---
title: "Freelance Hourly Rate Calculator: Hourly and Day Rate"
canonical: https://luckpanda.app/tools/hourly-rate-calculator
language: en
updated: 2026-10-09
content: baseline
---

# Freelance hourly rate calculator

**Hourly rate calculator: how it works** Work out the revenue you need (take-home pay grossed up for tax, plus business costs) and divide it by the hours you can actually bill in a year. $60,000 take-home at 25% tax and $6,000 of costs needs $86,000 of revenue; over 1,288 billable hours that is $66.77 an hour.

Free online tool: https://luckpanda.app/tools/hourly-rate-calculator (create on screen, no account needed).

## The formula

Revenue needed = take-home pay ÷ (1 − tax share) + business costs. Billable hours = (52 − weeks off) × hours a week × billable share. Hourly rate = revenue needed ÷ billable hours.

With the defaults: $60,000 ÷ 0.75 = $80,000, plus $6,000 costs = $86,000. Billable hours = 46 × 40 × 70% = 1,288. Rate = $86,000 ÷ 1,288 = $66.77, so charge at least $67 an hour, or $534 a day.

## How to use the hourly rate calculator

1. Pick your currency and enter the take-home pay you want a year.
2. Add your yearly business costs and the share of profit to set aside for tax.
3. Enter weeks off, hours a week and the share of hours you can bill.
4. Read the hourly rate, the day rate and the yearly revenue target.

## Checking your rate

- Compare with what clients pay for similar work in your market; a rate far below it signals inexperience, not value.
- Round up, and review it every year as costs and experience grow.
- Fixed-price quotes still need an hourly rate underneath: estimate the hours, add contingency, multiply.
- Tax set-aside is a rough share of profit; your accountant can give a better figure for your country.

## Questions people ask

### How do I calculate my freelance hourly rate?

Work out the revenue you need (take-home pay grossed up for tax, plus business costs) and divide it by the hours you can actually bill in a year. $60,000 take-home at 25% tax and $6,000 of costs needs $86,000 of revenue; over 1,288 billable hours that is $66.77 an hour.

### Why is the rate so much higher than my old salary per hour?

An employer pays for holidays, sick days, equipment, pension and the hours you spend on admin. As a freelancer you pay for all of that from what you bill, and only part of your working week is billable.

### What billable share should I use?

Many freelancers bill 60–75% of their working hours. The rest goes on finding work, admin, invoicing and learning. If you are just starting out, assume less.

### How is the day rate worked out?

It is the hourly rate × 8 hours. If your clients expect a 7.5-hour day, multiply by 7.5 instead.