About the Freelance Hourly Rate Calculator
What is the Freelance Hourly Rate Calculator?
Freelancers can't bill every working hour. This freelance hourly rate calculator spreads your income goal, expenses and tax over the hours you can actually bill.
It also gives a day rate and a monthly retainer figure.
How to use the Freelance Hourly Rate Calculator
- Take-home Income You Want per Year (₹) (sample: 15,00,000)
- Business Expenses per Year (₹) (sample: 2,40,000)
- Effective Tax Rate (%) (sample: 8)
- Working Weeks a Year (sample: 46)
- Working Hours a Week (sample: 40)
- Billable Share of Hours (%) (sample: 60)
- Profit / Savings Buffer (%) (sample: 15)
- Press Calculate My Rate (results also refresh as you type). The result card shows the Minimum Hourly Rate, along with Day rate (8 hours), Monthly retainer (full-time equivalent), Yearly revenue needed and Billable hours a year.
Formula used
Rate = [Take-home ÷ (1 − Tax rate) + Expenses] × (1 + Buffer) ÷ (Weeks × Hours × Billable %)
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Take-home Income You Want per Year (₹) | 15,00,000 |
| Business Expenses per Year (₹) | 2,40,000 |
| Effective Tax Rate (%) | 8 |
| Working Weeks a Year | 46 |
| Working Hours a Week | 40 |
| Billable Share of Hours (%) | 60 |
| Profit / Savings Buffer (%) | 15 |
| Result | Value |
|---|---|
| Minimum Hourly Rate | ₹1,948 |
| Day rate (8 hours) | ₹15,587 |
| Monthly retainer (full-time equivalent) | ₹1,79,250 |
| Yearly revenue needed | ₹21,51,000 |
| Billable hours a year | 1,104 |
| Rate in USD (at ₹88) | 22.14 USD/hour |
| GST | Add 18% GST for Indian clients; exports can be zero-rated under a LUT |
Tips for using the Freelance Hourly Rate Calculator
- Most freelancers bill only 50–70% of their working hours.
- Raise rates for new clients first, and review them every year.