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Hourly Rate Calculator

What should you charge per hour? Factor in your income goals, expenses, and billable hours.

Rs
Rs

Software, insurance, office, travel

Hours you actually bill clients

Setting the right hourly rate

Most freelancers undercharge because they only think about their salary. Your hourly rate needs to cover more than your take-home pay. It has to cover your rent, internet, equipment, accounting fees, holidays, sick days, and the time you spend finding new clients rather than billing.

Start with what you want to earn per year after tax. Add your annual business costs. Then figure out how many hours you actually bill in a year. After holidays, weekends, admin time, and marketing, most freelancers bill around 1,200 hours per year, not the 2,080 that a full-time job suggests.

Divide your total costs plus desired income by your billable hours, and you have your minimum rate. This calculator does that maths and also shows you what to charge if you want a specific profit margin on top.

Frequently Asked Questions

How do I calculate my hourly rate?+
Add your desired annual income plus annual expenses, then divide by your total billable hours per year. This gives you the minimum hourly rate you need to charge.
How many billable hours do freelancers work?+
Most freelancers bill 20-25 hours per week after accounting for admin, marketing, holidays, and sick days. A realistic annual estimate is around 1,200 billable hours.
Should I include tax in my hourly rate?+
Yes. Factor in PAYE income tax and any business expenses. The calculator includes a tax rate field so you can account for this.