Freelance Pricing Calculator
Estimate the hourly rate, project price and monthly revenue you may need based on your income goal, business costs and billable time.
Overview
This freelance pricing calculator helps you estimate what you may need to charge based on your target annual income, business expenses, available billable hours and a profit buffer. It can be used to set an hourly rate, check whether your current pricing is sustainable and build a simple project quote.
How it works
The calculator first totals your target income and annual business expenses, then adds your chosen profit buffer. That gives the annual revenue you need your freelance business to generate. It then divides that figure by your estimated annual billable hours to produce a recommended hourly rate. Your project price is estimated by multiplying that hourly rate by the project hours you enter.
How to use this calculator
- 1Enter the annual income you want your freelance work to generate.
- 2Add your yearly business expenses such as software, insurance and marketing.
- 3Enter the number of hours you can realistically bill each week.
- 4Choose how many weeks you expect to work during the year.
- 5Add a profit buffer to allow for growth, downtime or reinvestment.
- 6Enter the estimated hours for a typical project and review the suggested rate and quote.
Example Calculation
Target annual income
$70,000
Annual business expenses
$15,000
Billable hours per week
25
Working weeks per year
48
Profit buffer
10%
Estimated project hours
15
Recommended hourly rate
$77.92
If you want $70,000 in annual income, expect $15,000 in business expenses, bill 25 hours a week for 48 weeks and add a 10% buffer, you would need about $77.92 per hour. A 15-hour project would be priced at about $1,168.75, and your monthly revenue target would be about $7,791.
Frequently asked questions
What does this freelance pricing calculator estimate?
It estimates a recommended hourly rate, a simple project price and the monthly revenue needed based on your income target, expenses and billable time.
What are billable hours?
Billable hours are the hours you can directly charge to clients. They usually exclude admin, sales, marketing, bookkeeping and unpaid revisions.
Why does the calculator include a profit buffer?
A profit buffer can help cover slower periods, business growth, unexpected costs and reinvestment beyond your basic income and expenses.
Should I use total working hours or billable hours?
Use billable hours. Most freelancers cannot charge for every hour they work, so billable time gives a more realistic pricing target.
Does this calculator include taxes?
No. This version focuses on target income, business expenses and profit buffer. Personal and business tax treatment varies and should be reviewed separately.
Can I use this to price fixed-fee projects?
Yes. Enter your estimated project hours to get a simple fixed-fee starting point based on your recommended hourly rate.
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Assumptions and warnings
Assumptions
- The calculation assumes your billable hours estimate is realistic and consistent over the year.
- Business expenses are treated as annual operating costs and do not include personal taxes.
- The profit buffer is applied on top of your target income and annual business expenses.
- Project pricing is based on estimated hours and does not include scope changes or rush fees.
Warnings
- This calculator provides an estimate only and is not financial or tax advice.
- Actual freelance pricing should also consider market demand, experience, revisions, payment terms and project risk.