Hourly Rate from Target Income

Target salary / billable hours = required hourly rate.

Inputs

40 hrs/wk × ~75% billable × 50 wks = ~1500.

Result

Loading calculator…
—

General calculation reads

Amazon affiliate
How Not to Be Wrong
Jordan Ellenberg - math thinking
Shop on Amazon
The Joy of X
Steven Strogatz - accessible math
Shop on Amazon
Scientific calculator (Casio fx-991EX)
Shop on Amazon

As an Amazon Associate we may earn from qualifying purchases. This does not add cost for you.

How to use this calculator

  • Enter target income.
  • Estimate billable hours per year (usually 1200-1700).
  • Read the rate.

About this calculator

For freelancers and consultants: pick a target income, divide by realistic billable hours (typically 1200-1700 per year due to admin, sales, vacation, downtime), and you have your minimum hourly rate. Use the freelance-rate-pricing-calculator for a fuller version with overhead and profit margin.

Frequently asked

What's a realistic billable percentage?+
60-75% for most consultants. The other 25-40% is sales, admin, learning, vacation.
40 hours × 50 weeks = 2000 — why don't I use that?+
Because 100% billable is unrealistic. You'll spend time finding clients, doing taxes, taking sick days. Build in slack.
How does this compare to my W-2 salary?+
Roughly: hourly rate × 2000 ≈ W-2 equivalent (no benefits, double-FICA, no PTO). Freelance rate should be ~2× employed equivalent for parity.
Tax implications?+
Self-employed pay both halves of FICA (15.3%) plus quarterly estimated taxes. Build that into your "target income" plan.
Why not just charge per project?+
Project pricing is fine — but the hourly rate is the building block. You can't scope a project without estimating hours and applying a rate.

Related calculators

Freelance Rate Pricing Calculator
(Target salary + overhead + profit margin) / billable hours = full freelance hourly rate.
College Degree ROI Calculator
Lifetime income premium vs total cost (tuition + 4 years of foregone earnings).
CAC vs LTV Ratio
LTV / CAC ratio. Healthy SaaS: 3:1+; under 1:1 burns money.
Subscription Cancellation ROI
Recouped = monthly savings × months you keep it cancelled.
Present Value Calculator
PV = FV / (1 + r)^n. The current worth of a future cash flow.
Mortgage vs Renting (Detailed)
30-year comparison: ownership equity + appreciation vs rent + alternative-investment growth.

More tools you might like

Hand-picked tools that pair well with this one — same audience, same intent.

Freelance Rate Pricing Calculator
Calc

(Target salary + overhead + profit margin) / billable hours = full freelance hourly rate.

Mortgage vs Renting (Detailed)
Calc

30-year comparison: ownership equity + appreciation vs rent + alternative-investment growth.

College Degree ROI Calculator
Calc

Lifetime income premium vs total cost (tuition + 4 years of foregone earnings).

CAC vs LTV Ratio
Calc

LTV / CAC ratio. Healthy SaaS: 3:1+; under 1:1 burns money.

Subscription Cancellation ROI
Calc

Recouped = monthly savings × months you keep it cancelled.

Target Heart Rate Calculator
Health

AHA target heart rate range (50–85% of max) for general cardio fitness.