Hourly Rate & Day Rate Calculator
Calculate your optimal freelance hourly rate based on target net income, billable utilization, and business expenses.
About this tool
Discover the exact hourly rate needed to achieve your personal income goals while accounting for taxes, vacations, and non-billable time.
How to use this tool
- Enter your desired net annual take-home income.
- Set working weeks per year and target hours per week.
- Adjust your expected billable utilization slider (typically 50%-70%).
- Input annual business expenses and review your suggested rates.
How it works
Models total working capacity against billable utilization percentages and derives minimum and suggested hourly rates.
When to use this tool
- New freelancers setting initial market rates
- Experienced contractors adjusting for increased business overhead
Frequently asked questions
What is a typical billable utilization rate?
Most solo freelancers spend 55% to 65% of their working hours on billable client tasks; the remainder covers admin, marketing, and learning.
Limitations
Outputs are financial planning estimates, not guarantees of market pricing.
Privacy
Financial goals are processed locally.