Suggested hourly floor
$95Based on 1,150 billable hours per yearFree freelance rate calculator
Find the rate beneath the quote.
Your rate floor should cover the income you need, the costs the business carries, and the hours you can actually invoice—not every hour you work.
No signupNo data uploadsTransparent formula
- Annual revenue target
- $108,560 Income + annual costs + operating buffer
- Monthly break-even revenue
- $9,047 Planning target before personal and business taxes
- Eight-hour day rate
- $760 A reference point, not a required billing model
- 40-hour project floor
- $3,800 Before project complexity and delivery risk
Optional one-time add-on
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The formula
Revenue need ÷ billable capacity.
((Income target + annual business costs) × (1 + buffer)) ÷ annual billable hours
Annual billable hours are calculated from 52 weeks minus unpaid weeks, multiplied by realistic billable hours per working week.
How to use the calculator
Four inputs, one usable pricing floor.
Work through the fields in order, then carry the result into a project quote. The calculator stays in your browser and does not estimate taxes.
- 01
Set the revenue need
Enter your annual income target and monthly business costs so the business need is visible before you price a project.
- 02
Model billable capacity
Set unpaid weeks and realistic billable hours per working week so the floor funds time you can actually invoice.
- 03
Choose an operating buffer
Use the buffer for missed estimates, equipment replacement, slow periods, and reinvestment; it is not a tax estimate.
- 04
Carry the floor into the quote
Use the result in QuoteBoundary, then price complexity, collaboration, uncertainty, timing, and the written scope.
Count the real costs
Software, insurance, equipment, contractors, professional services, and other operating expenses have to be funded by revenue.
Use billable capacity
Sales, admin, bookkeeping, learning, and time off are real work, but clients cannot be invoiced for all of it.
Price projects above the floor
Your hourly floor anchors the estimate. Complexity, revisions, uncertainty, schedule, and value determine the project quote.
Methodology & limits
Planning structure, not tax advice.
The model follows the same basic principle as break-even analysis: revenue must cover the costs the business carries. It does not estimate income tax, self-employment tax, benefits, debt payments, or local legal obligations.
Add those needs to your target with qualified guidance. The U.S. Small Business Administration recommends identifying costs to price more intelligently, while the IRS explains that self-employed people may owe income and self-employment taxes.
Project pricing FAQ
Know what the rate is for.
How do I calculate a sustainable freelance hourly rate?
Add your annual income target and annual business costs, apply a planning buffer, then divide by the hours you can realistically bill during the year.
Why are billable hours lower than working hours?
Freelancers also spend time on sales, administration, bookkeeping, professional development, and unpaid time off. Only hours that can realistically be invoiced should fund the rate calculation.
Does this calculator estimate taxes?
No. Tax obligations vary by location and situation. Add your own tax requirement to the income target or consult a qualified tax professional.
What should I charge for a freelance project?
Start with the sustainable rate floor, then price the estimated effort, complexity, uncertainty, revisions, stakeholders, timing, and payment confidence. QuoteBoundary carries the result into minimum, recommended, and protected project prices. Open the free project quote calculator →
Next step
Turn the rate into a project quote.
Carry your rate floor into QuoteBoundary, then price complexity, collaboration, uncertainty, and the written scope.