Hourly Rate from Target Income
Target salary / billable hours = required hourly rate.
Result
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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.
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