Freelancer Hourly Rate Calculator accuracy and testing

Formula source

• Annual billable hours = billable hours per week * (52 - weeks off). Gross revenue needed = (desired income + expenses) / (1 - tax reserve). Hourly rate = gross revenue needed / annual billable hours * (1 + profit buffer).

Test cases

Known limitations

• This page documents the checked-in calculator logic and does not certify results for every real-world edge case.
• Use the result as a planning estimate unless the calculator page states a stricter purpose.

Assumptions

• Tax reserve is modeled as a percent of gross revenue, not a tax filing estimate.
• Billable hours are assumed consistent across working weeks.
• Calculations run locally and do not store client, income, or tax details.

Unit handling

• Desired Annual Income accepts values in $.
• Annual Business Expenses accepts values in $.
• Tax Reserve accepts values in %.
• Billable Hours per Week accepts values in hr/week.
• Weeks Off per Year accepts values in weeks.
• Profit Buffer accepts values in %.
• Recommended Hourly Rate is displayed as currency.
• Annual Billable Hours is displayed in hr.
• Gross Revenue Needed is displayed as currency.
• Monthly Revenue Target is displayed as currency.

Rounding rules

• Number displays use up to 2 decimal places in the calculator UI.
• Currency outputs are displayed with standard US dollar formatting.
• Input precision follows configured step values where provided.

Version history

Change log