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FREETOOLS LABS

Business & self-employment

Freelancer Hourly Rate Calculator

Plan realistic available and billable time, revenue targets, minimum and target hourly rates.

Working capacity

Plan realistic available and billable time, revenue targets, minimum and target hourly rates.

Working capacity
Financial target

Personal taxes, social contributions and private deductions are not calculated and must be considered separately. Personal income is not net pay.

Additional assumptions

Result

Target hourly rate

71.76 €/h

including 10% safety/profit reserve

Minimum hourly rate64.21 €/h
Required annual revenue84,705.88 €
Required monthly revenue7,058.82 €
Billable hours per year1180.4 h
Available working hours per year1816.0 h
Billable share65.0 %
Desired personal income60,000.00 €

Target hourly-rate breakdown

Desired personal income (per year)60,000.00 €
Desired personal income (per billable hour)50.83 €/h
Fixed business costs (per year)12,000.00 €
Fixed business costs (per billable hour)10.17 €/h
Variable costs (per year)4,235.29 €
Variable costs (per billable hour)3.59 €/h
Safety/profit reserve (per year)8,470.59 €
Safety/profit reserve (per billable hour)7.18 €/h

Working-time breakdown

Theoretical working days260.0
Vacation days25
Illness/absence buffer8
Other non-working days0
Available working days227.0
Available working hours per year1,816.0 h
Billable hours per year1,180.4 h
Non-billable working hours635.6 h
Billable share65.0 %

What if

 AssumptionBillable hours per yearMinimum hourly rateTarget hourly rateRequired annual revenue
Baseline65.0 %1,180.4 h64.21 €/h71.76 €/h84,705.88 €
Scenario A50.0 %908.0 h83.47 €/h93.29 €/h84,705.88 €
Scenario B80.0 %1,452.8 h52.17 €/h58.31 €/h84,705.88 €

Model assumptions and limits

This is a deterministic business-planning model. Required rates can differ because of taxation, social contributions, VAT treatment, payment defaults, client acquisition, unpaid overtime, seasonal utilization, pricing power, subcontractors and unexpected expenses. It does not replace tax, legal or accounting advice.

Of 1,816.00 available working hours, about 1,180.40 are billable at a 65.0% share.

To cover the income target and business costs, the modelled minimum hourly rate is 64.21 €/h.

With a 10.0% safety/profit reserve, the modelled target hourly rate is 71.76 €/h.

A lower billable share spreads the same annual targets across fewer client hours and increases the required hourly rate.

Frequently asked questions

Why are not all working hours billable?

Client acquisition, administration, communication, planning and internal work take time without directly creating client hours.

What is the difference between minimum and target hourly rate?

The minimum rate covers income target, fixed costs and variable costs. The target rate also includes the entered reserve.

Does the calculator calculate taxes?

No. Personal taxes, social contributions and country-specific obligations are deliberately outside this model.