📖 How to Use This Calculator
- Desired income: What you want to take home after taxes and expenses
- Work hours: How many hours you're willing to work each week
- Billable percentage: Realistic % of time spent on paid client work (not admin, marketing, etc.)
- Weeks off: Vacation, sick days, holidays you won't be billing
- Expenses: Software, equipment, insurance, taxes, etc.
📐 The Formula
Billable Hours = Work Hours × Working Weeks × Billable %
Why Billable Percentage Matters
Most freelancers only bill 50-65% of their working hours. The rest goes to:
- Marketing and finding new clients
- Admin tasks, invoicing, emails
- Learning and skill development
- Project management
❓ Frequently Asked Questions
Most freelancers bill 50-65% of their working hours. Agencies often target 70-80%. If you're just starting, use 50% to be safe.
Yes! Rush rates of 1.5x to 2x your normal rate are standard. This compensates for schedule disruption and overtime.
Include self-employment tax (15.3% in the US) plus income tax in your expenses. Many freelancers set aside 25-30% for taxes.
Both have merits. Hourly is safer when scope is unclear. Project-based can be more profitable as you gain experience and work faster.
Review annually at minimum. Raise rates when demand exceeds capacity, you gain new skills, or costs increase. Give existing clients 30-60 days notice.