← All tools/Calculators/Business/Freelancer Hourly Rate Calculator
Freelancer Hourly Rate Calculator
The hourly rate that covers your target income, expenses and tax — at the hours you actually bill.
Required hourly rate
How the total is built up
Figures are estimates to help you set a rate, not tax or financial advice.
How it works
Tax amount = tax % × (target income + expenses) Total needed = target income + expenses + tax amount Billable hours = weeks × hours per week × billable % Hourly rate = total needed ÷ billable hours
Worked example: target ₹12,00,000 plus expenses ₹1,20,000 is ₹13,20,000; 20% tax on that is ₹2,64,000, so the total needed is ₹15,84,000. At 48 weeks × 40 hours × 60% billable = 1,152 hours, the rate is ₹15,84,000 ÷ 1,152 = ₹1,375 an hour — ₹1,32,000 a month, or ₹11,000 a day at 8 hours.
Frequently asked questions
Why is the rate higher than my salary divided by hours?
Because only your billable hours earn money, and the rate must also cover expenses and tax — not just the income you want to keep.
What counts as billable time?
Only hours a client pays for. Admin, pitching and learning time are real work, but they are not billable, which is why the billable share matters so much.
Should I charge exactly this rate?
Treat it as your floor, not your price. If clients will pay more, charge more — this figure is the minimum that covers your costs.
More tools
Tell us what you think
Loving this tool, or stuck on something? Tell us — it takes a minute.
We’ll only use your name and email to reply if needed. The tool and page are filled in for you.