Productivity
Project Hourly Rate Calculator
Calculate the minimum hourly rate you need to charge as a freelancer to meet your income and expense goals.
Minimum Hourly Rate
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How It Works
Hourly Rate = (Target Income + Business Expenses) Γ· Billable Hours. Billable hours are typically 50β70% of total work hours (the rest goes to admin, sales, and non-billable tasks). A 40-hr/week freelancer might bill only 1,000β1,400 hours/year.
Example
$80,000 target income + $12,000 expenses = $92,000 needed. At 1,200 billable hours: minimum rate = $76.67/hour.
Frequently Asked Questions
What percentage of hours should I bill?
Most freelancers bill 50β70% of available work hours. The remainder goes to admin, marketing, networking, and professional development.
Should I raise my rate?
If you're consistently booked or turning away work, your rate is too low. If you're struggling to win clients, your rate or positioning needs adjustment.
How do I handle project-based vs. hourly pricing?
For project pricing, estimate hours Γ rate, then add 20β30% for scope creep. For retainers, lock in a minimum monthly commitment to ensure stable income.