Freelance Rate & Quote Builder
Calculate freelance hourly rate and generate project quotes with margins. Enter values for instant results with step-by-step formulas.
Formula
Hourly Rate = (Target Income / (1 - Overhead%) / (1 - Profit%)) / Billable Hours × Experience Multiplier
Start with income goal, add overhead and profit margins, divide by actual billable hours (not total work hours), then adjust for experience level.
Worked Examples
Example 1: Junior Developer
Problem:Target: $70K income. 30 billable hrs/week, 3 weeks off. 15% overhead, 15% profit. Junior level.
Solution:Working weeks: 52 - 3 = 49\nBillable hours: 30 × 49 = 1,470/year\n\nWith overhead: $70K / 0.85 = $82,353\nWith profit: $82,353 / 0.85 = $96,886\n\nBase rate: $96,886 / 1,470 = $65.91/hr\nJunior multiplier (0.7): $65.91 × 0.7 = $46.14/hr\n\nRounded: $50/hr\n\nProject quote (40 hrs): $2,000\nWith buffer: $2,300
Result:$50/hr | $400/day | $2,000-2,300 for 40hr project
Example 2: Senior Designer
Problem:Target: $120K income. 25 billable hrs/week, 5 weeks off. 25% overhead, 20% profit. Senior level.
Solution:Working weeks: 52 - 5 = 47\nBillable hours: 25 × 47 = 1,175/year\n\nWith overhead: $120K / 0.75 = $160,000\nWith profit: $160K / 0.80 = $200,000\n\nBase rate: $200,000 / 1,175 = $170.21/hr\nSenior multiplier (1.4): $170.21 × 1.4 = $238.30/hr\n\nRounded: $240/hr or $1,900/day\n\nMonthly retainer (25 hrs/wk): $24,000\nProject (80 hrs): $19,200 + buffer = $22,000
Result:$240/hr | $1,900/day | $22K for 80hr project
Example 3: Expert Consultant
Problem:Target: $200K income. 20 billable hrs/week, 6 weeks off. 30% overhead, 25% profit. Expert level.
Solution:Working weeks: 52 - 6 = 46\nBillable hours: 20 × 46 = 920/year\n\nWith overhead: $200K / 0.70 = $285,714\nWith profit: $285,714 / 0.75 = $380,952\n\nBase rate: $380,952 / 920 = $414.08/hr\nExpert multiplier (2.0): $414 × 2.0 = $828/hr\n\nRounded: $800/hr or $6,400/day\n\nThis rate requires:\n- Specialized expertise\n- High-value outcomes\n- Enterprise clients\n- Value-based positioning
Result:$800/hr | $6,400/day | Elite positioning required
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Formula: (Target Income + Overhead + Profit) / Billable Hours. Key insight: only 50-70% of work time is billable (rest is admin, marketing, learning). Account for taxes, benefits, and equipment you now pay yourself.