Freelance Billable Rate Calculator
Translate an annual income target and overhead into a billable-hour revenue requirement.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Freelance Billable Rate Calculator
Use billable hours rather than all hours worked, so administration and sales time do not inflate paid capacity. The reserved share is removed from revenue before the target and overhead are covered.
The calculation
Worked example
A $60,000 target plus $12,000 overhead with a 20% revenue reserve needs $90,000 revenue. Over 1,200 billable hours, the rate is $75/hour.
Assumptions and limits
The reserve is a planning percentage, not a tax calculation. The model assumes collection at the target rate and schedule and does not account for market demand, late payment or a jurisdiction’s deductions.
Common questions
Why use billable rather than working hours?
Unpaid administrative hours do not generate the invoice revenue needed here.
Is the income target take-home pay?
It is your planning target after the entered reserve and overhead, not a computed legal tax outcome.