Price freelance work from jobs, not vibes
A freelance hourly rate should cover more than the hours you invoice. It has to fund non-billable admin, software, insurance, quiet months, and the tax you will owe as a US sole proprietor / 1099 contractor or a UK sole trader / limited-company director paying yourself differently. This freelance hourly rate calculator turns three concrete inputs—target annual income, realistic billable hours, and yearly business expenses—into a recommended rate you can defend on a proposal call.
The formula behind the result
Recommended hourly rate ≈ (desired annual income + annual business expenses) ÷ billable hours per year. Desired income is what you want left for living after you have priced overhead into the model. Billable hours are not “40 × 52”; they are the hours you can actually sell after sales, bookkeeping, revisions, and vacation. Expenses include tools, coworking, marketing, accountancy, equipment, and a cushion for equipment replacement. If the rate looks high, the honest fix is usually fewer free hours in the denominator or a clearer expense list—not quietly undercharging forever.
Hourly floors versus fixed project quotes
Many freelancers keep an hourly floor from this math, then package discovery, delivery, and revisions into fixed fees clients can buy without watching the clock. Use the hourly number to check whether a flat quote still pays you for scope creep. When utilization drops, re-run the calculator; a rate calibrated for 1,200 billable hours fails if you only sell 700. Pair the result with a salary-after-tax or gross-to-net view if you need a sense of what “enough” means after income tax and social contributions.
US and UK cost realities
US freelancers often must budget self-employment tax, health insurance, and retirement contributions that an employer would otherwise share. UK freelancers face income tax, National Insurance, Making Tax Digital habits, and sometimes VAT registration thresholds. This page does not file a return or model every wrapper; it gives a pricing spine so you can add the right local buffers. Raise your target income until the after-tax lifestyle you want still clears.
When to update your rate
Update after a tool stack gets expensive, after you specialize into scarcer work, after utilization changes, or when inflation quietly lifts your living costs. Publish rates with confidence only when the spreadsheet behind them is honest. Results here are planning estimates in your browser—not employment, tax, or legal advice.