Free Pricing Tool
A free hourly rate calculator converts your income goal, expenses, tax load, benefits, utilization, and profit margin into a sustainable billable rate for freelance or consulting work.
Suggested rate
$141.66/hr
Target $90,000 take-home income with $16,000 in annual expenses requires about $141.66/hr across 1,080 billable hours, or $12,749 in monthly revenue.
Income
$90,000
Expenses
$16,000
Taxes
$21,600
Benefits
$9,000
Profit
$16,392
FAQ
An hourly rate calculator converts an annual income goal, business expenses, taxes, benefits, utilization, and profit margin into the billable hourly rate needed to run a sustainable freelance or consulting business.
Add your target take-home income, annual business expenses, estimated taxes, benefits, and desired profit margin. Divide that annual revenue target by your realistic billable hours, not by every hour you work.
Many consultants use 70% to 85% utilization because non-billable time goes to sales, admin, proposals, invoicing, learning, and client communication. Lower utilization requires a higher hourly rate.
Yes. Independent consultants and freelancers pay their own taxes, insurance, retirement contributions, software, equipment, and downtime, so those costs should be included before quoting a client-facing rate.
It is similar, but this calculator is focused on a sustainable billable hourly rate for consultants, agencies, and freelance service providers who need to account for utilization and overhead.
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