Money · Rate calculator
Freelance Hourly Rate Calculator
Work out the minimum rate you need to charge and the recommended rate once overhead and profit margin are included.
Instant result
Plain-English why
Copyable takeaway
What this means
This calculator divides your total cost base by your available billable hours, then adds your profit margin to give a minimum and a recommended hourly rate.
Formula used
Minimum rate = (target income + annual overhead) ÷ annual billable hours. Recommended rate = minimum rate × (1 + profit margin %)
Worked example
Targeting £50,000, billing 30 hours per week, 6 weeks off, £500/month overhead, and 20% margin gives a minimum of around £40/hr and a recommended rate of £48/hr.
Common questions
Why is the minimum rate lower than what I should charge?
The minimum rate covers your income and overheads but leaves no buffer for slow months, gaps between contracts, professional development, or business risk. The recommended rate builds in your profit margin to absorb these.
What should I include in overhead costs?
Software subscriptions, insurance, accountancy fees, equipment, home office costs, and any other business expenses that recur monthly. Do not include personal costs — those come from your target income.
Plain-English summary
Enter your figures to find the rate that covers your costs, hits your income target, and builds in a margin for the gaps.
This section translates the result into a short, direct takeaway rather than leaving the page at a bare number.
Read the guide
How to set a freelance day rate that actually covers what you need
A practical guide to calculating a floor rate, building in overhead and margin, and avoiding the trap of undercharging for invisible costs.
Read the guideRelated instruments
Keep going
Percentage Change Engine
Work out the percentage increase or decrease between two values with a clear result and worked explanation.
Open verdictVAT Engine
Add or remove VAT from a price with clear totals, tax breakdown, and net versus gross context.
Open verdictSubscription Shame Index
Find out how much your subscriptions are quietly costing you in money and attention.
Open verdict