Hourly Rate Calculator for Freelancers and Trades

Enter the income you want, your business costs, the weeks you work and how much of your time is actually billable. You get an hourly range, a fixed project price with revisions and risk built in, a monthly retainer and a rates block you can publish on your website. Trade presets fill in example assumptions you can change. Everything is calculated in your browser.

How it works

  1. Optionally pick a preset (cleaner, handyman, photographer, designer or developer). It fills example assumptions for costs, weeks and billable share; every number stays editable and none of them is market data.
  2. Your required revenue is your income target plus business costs.
  3. Billable hours are working weeks times weekly hours times your utilisation (the share of time you can charge for). Travel, quoting, admin and learning are the rest.
  4. Hourly rate = required revenue divided by billable hours. The range shows 10 percent below and 20 percent above, to give room to negotiate.
  5. The project quote adds up the work hours, revision rounds, project management and a buffer for late payment or scope drift, all at your hourly rate. The retainer multiplies monthly support hours by your rate.
  6. Publish your rates: choose which lines to show and copy a rates block as HTML or plain text for your website. Download the worksheet to keep the numbers.

Why the simple formula undercharges

Dividing your income by 2,000 hours assumes you bill every hour of a full-time year. In practice some weeks go on holiday and illness, and a large share of each week goes on finding work, travelling, answering messages and invoicing. Counting working weeks and utilisation separately gives a rate you can actually live on.

Worked example: a handyman

Say a handyman wants $55,000 a year and spends $12,000 on a van, fuel, tools and insurance. That is $67,000 of required revenue. Working 47 weeks of 40 hours with 55 percent billable (the rest is driving, quoting and buying materials) gives 1,034 billable hours, so the rate is about $65 an hour. Those inputs are an example, not a benchmark.

The same arithmetic for a 3-hour job gives about $195 before materials. If travel to small jobs eats most of an hour, a minimum charge of one or two hours is how many trades protect their day.

Pricing revisions, support and late payment

Revisions and support are where projects quietly lose money. Put a number on each revision round, write down how many are included, and price ongoing care as a monthly retainer with a fixed number of hours.

The risk buffer covers the time you lose to slow feedback and chasing invoices. If a client pays late often, raise the buffer or ask for a deposit.

Tips

Frequently asked questions

How is the hourly rate calculated?

Income target plus business costs, divided by the hours you can actually bill in a year. Billable hours are working weeks times hours per week times your utilisation percentage.

What utilisation should I use?

Utilisation is the share of your working time you can charge a client for. Sales, admin, travel and learning all come out of it, so it is well below 100 percent. The defaults and presets are only starting assumptions; use your own time records if you have them.

What do the trade presets change?

They fill example costs, working weeks, hours and billable share for a typical setup in that trade, plus example project hours. They are assumptions to edit, not averages or recommendations. Your own numbers will differ.

How do I turn an hourly rate into a project price?

Estimate the work hours, add hours for each revision round and for project management, then add a buffer for risk such as late feedback or late payment. Multiply by your hourly rate. The calculator does this for you and shows each line.

How do I publish my rates on my website?

Use the Publish your rates section. Choose which prices to show, then copy the HTML to paste into your site or the plain text to paste into any page editor.

Is this tax advice?

No. The numbers are a planning worksheet. Tax, insurance and legal costs depend on where you live, so include them in your costs or check with an accountant.

Is my data saved?

No. The calculator runs in your browser and nothing you type is sent to We.Inc.

Related: Agency Pricing Calculator, Estimate & Quote Generator, Cleaning Price Calculator, Website Cost Calculator, Invoice Generator, Profit Margin Calculator.

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