Hourly rate calculator

Start from the income you want to take home, then add taxes, business overheads and the hours you can actually bill.

How the rate is calculated

Billable hours = weeks × hours per week × billable share. Annual amount to cover = take-home pay × 12 × (1 + taxes) + overheads. Minimum rate = annual amount ÷ billable hours. Recommended rate = minimum rate × (1 + buffer).

Example: 45 weeks × 39 h × 70% = 1,228.5 billable hours. 2,000 × 12 × 1.45 + 12,000 = 46,800 to cover. 46,800 ÷ 1,228.5 = 38.10 per hour minimum, 41.90 with a 10% buffer.

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Results are estimates for guidance only, not tax, legal or accounting advice. Check your own situation with your accountant. Nothing you type is sent anywhere: everything is calculated in your browser.

Frequently asked questions

Why only count billable hours?

Quoting, travel, admin and buying supplies take time you cannot invoice. If you divide by every hour you work, your rate will be too low.

What percentage should I use for taxes?

It depends on your country and business structure. Use the figure your accountant or tax office gives you; the default value is only an example.

Is the day rate based on 8 hours?

Yes, the day rate shown is the recommended hourly rate × 8.