ConverterHub

Billing Rate Calculator

Enter target salary, billable hours, overhead and profit margin to get the required hourly billing rate.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

This calculator works out the hourly rate a freelancer or consultant must charge to hit a real income target, not just an arbitrary number. Starting from a desired annual salary, it divides by the number of billable hours actually available in a year — after accounting for vacation, admin time and non-billable work — then layers on overhead and profit margin: (Salary ÷ Billable Hours) × (1 + Overhead%) × (1 + Profit%).

It's the pricing method taught in most freelance and agency business courses, because charging only for salary and ignoring overhead (software, insurance, taxes, downtime) is one of the most common reasons independent businesses fail to actually break even.

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