Free tools / Billable rate calculator

Find your billable rate.

Make room for expenses, time off, and the work you cannot invoice. See the hourly rate that supports your income target.

Your working year

Currency

Use this currency for every amount. Changing it changes the label, without converting amounts.

Annual income target, before tax

What you want to earn after business expenses, before personal taxes.

Annual business expenses

Include the costs your business needs to cover, such as software, equipment, and insurance.

Working weeks per year

Allow for holidays and time off.

Working hours per week

Include admin and other unbilled work.

Billable share of working hours (%)

At 60%, you bill 24 of a 40-hour week. The rest covers work such as proposals, admin, and learning.

Updates as you type.

This is a planning baseline. It does not add taxes, a profit margin, or a reserve for unpaid invoices. Consider those separately when setting your price. Your entries stay in this page and are not saved.

How the rate is calculated

Start with the annual income you want and add your business expenses. Divide that revenue target by the hours you expect to bill.

(Income + expenses) ÷ (weeks × hours per week × billable % ÷ 100)

For example, 80,000 in income plus 16,000 in expenses, spread across 48 weeks at 40 hours and 60% billable time, gives 1,152 billable hours. The starting rate is 83.34 per hour.

Use the time you actually bill

A full working week rarely becomes a full invoice. Review your tracked billable and nonbillable time to choose a realistic percentage, then revisit it when your workload changes.

The billable hours calculator can total those records. For fixed-price work, compare the project fee with all the hours it took, including revisions.

Your final price also depends on the work, the value you bring, and what the client agrees to pay.