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Freelance hourly rate calculator

Estimate a freelance hourly rate from your annual owner-pay goal, business costs, billable hours and an optional buffer. The result is a planning estimate before GST—not a market-rate recommendation or a personal tax calculation.

Freelance hourly rate

Pricing planner

Estimate the minimum hourly revenue needed to support your chosen owner-pay goal and annual costs across realistic billable hours. Add an optional buffer, then compare the result with your service value and market.

Optional buffer on top of owner pay and costs.
Suggested minimum rate, before GST
$114.73 / hour
Billable hours / year920 hours
Annual revenue target$105,555.56

Formula: (owner-pay goal + annual costs) ÷ billable hours ÷ (1 − buffer).

What this estimate assumes

This is a planning estimate, not a market-rate recommendation. It assumes the annual owner-pay goal is before personal tax and excludes GST, income tax, super, bad debts and other costs unless you include them. Allow for non-billable time when estimating billable hours.

How to use this calculator

Enter your annual owner-pay goal before personal tax, annual business costs, billable hours per week, billable weeks per year and an optional profit buffer. The calculator divides the revenue target by your estimated billable hours.

Formula and example

Billable hours are the time you can realistically charge clients for. Admin, marketing, quoting, leave and training reduce available billable time, so use a realistic weekly figure.

Related calculators

  • GST calculator — Add or remove GST from a price and see the GST component.
  • Markup & margin — Set a product price and compare markup with gross margin.
  • Break-even sales — Estimate the monthly revenue needed to cover business costs.

Guides for this calculator

Frequently asked questions

How is the suggested freelance hourly rate calculated?

The calculator adds your annual owner-pay goal and annual business costs, applies the optional buffer, then divides by estimated annual billable hours.

Is this freelance rate after tax or GST?

No. The owner-pay goal is entered before personal tax, and the result is shown before GST. Tax and GST obligations are not calculated.

Why do billable hours matter?

Your rate target must be earned during hours you can invoice. Admin, marketing, leave and other non-billable work reduce annual billable capacity.

Is this the right rate for my industry?

It is a cost-based planning estimate only. Consider your services, experience, client value, scope and market before setting a price.