How the calculator sets your rates

It starts with your target annual income, then works backward through available hours, non-billable time, and project factors. The goal is a sustainable rate that still fits your market.

Your rate = (target income ÷ available hours) × adjustments

The basics

Available hours: Your preferred weekly hours are multiplied by 48 working weeks, leaving four weeks for vacation and unexpected gaps.
Overhead time: A 1.4× multiplier covers non-billable administration, marketing, sales, and business development.

Adjustment factors

Four factors adjust the base rate to reflect the value and effort of the work.

Project complexity

Standard: 1.0×
Complex: 1.3×
Highly complex: 1.6×

Timeline urgency

Standard: 1.0×
Urgent: 1.5×
Immediate: 2.0×

Client type

Startup: 0.9×
Mid-market: 1.15×
Enterprise: 1.5×

Engagement length

One-off project: 1.0×
3-6 months: 0.9×
6+ months: 0.8×

Reality check

The calculator compares your income target with a full-time salary benchmark.

Conservative (up to 1.2× salary): Usually achievable with standard rates.
Realistic (1.2-1.5× salary): Achievable with good positioning.
Ambitious (1.5-2.0× salary): Requires a strong strategy and positioning.
Stretch (over 2.0× salary): Needs an exceptional value proposition.

Example

Starting point

Target income: $120,000 per year
40 working hours per week
4 weeks of buffer time

Calculation

Available hours: 40 × 48 = 1,920 hours per year
Base rate: ($120,000 ÷ 1,920) × 1.4 = $87.50 per hour
Rounded final rates: $90 hourly, $720 daily, and $3,600 weekly

Remember

This calculation is a strong starting point. Adjust final rates for your circumstances, current market, and client relationship. A useful rate must be sustainable for your business and valuable to the client.

Built for freelancers, consultants, and agencies. For more utilities, explore the full tools catalog, Freelance Codex for deeper guides to freelance pricing, contracts, and delivery.

Professional rate calculator