Free tool

Hourly rate calculator for freelancers

Start from the income you want, add your expenses, take out your vacation: the result is the minimum hourly rate to charge.

Target net income per year ($)Business expenses per year ($)Software, equipment, insurance, office, travel, accountant.

Weeks of vacation per yearInclude statutory holidays and sick days too.Billable hours per weekOnly hours a client pays for, not admin or prospecting.

Billable hours per year: 1,200 h
To bill per year: $68,000
Minimum hourly rate: $56.67

($60,000 + $8,000) ÷ ((52 − 4) weeks × 25 h) = $56.67 per hour

Income tax, contributions (QPP, QPIP) and sales taxes are not included in this calculation. Check with your accountant what to plan for on top.

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Frequently asked questions

How is it calculated?

Add the target net income and the business expenses, then divide by the billable hours of the year: (52 weeks minus vacation) × billable hours per week.

Why billable hours and not hours worked?

Because only the hours a client pays for bring in money. Admin, bookkeeping and finding clients take time that the rate has to cover.

What about taxes?

They are not included. This calculator gives a minimum before tax and contributions: your accountant can tell you how much to plan for on top, given your situation.

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