★ MONEY · PAY · FREELANCE
$70.83 an hour replaces an $80,000 salary. At 30 billable hours a week and 48 weeks a year, with $5,000 of expenses and a 20% profit margin, the rate is $70.83 an hour, $566.67 a day and $2,125.00 a week. Enter your target salary and billable hours to find your rate.
A freelance rate replaces your target salary, pays for the business, and leaves a profit — over the hours you can actually bill. This calculator works out the hourly rate, the day rate, the weekly and monthly income, the annual revenue and the profit, and it runs the calculation backwards from any target rate.
A freelance rate is not a guess and it is not your old salary divided by 2,000. It is the rate that replaces your target salary, pays for the business, and leaves a profit — over the hours you can actually bill. Start with the billable hours: the hours a week you can charge a client for, times the weeks a year you work. Divide the target salary by those hours for the base rate. Add the business expenses and divide again for the cost rate. Then add the profit margin, and you have the rate. The day rate is the hourly rate times 8, the weekly income is the rate times the billable hours a week, the monthly income is the weekly income times 52 divided by 12, and the annual revenue is the rate times the billable hours a year.
At the defaults — salary $80,000, billable 30 hours a week, 48 weeks a year, expenses $5,000, margin 20% — the billable hours are 30 × 48 = 1,440 hours a year. The base rate is $80,000 ÷ 1,440 = $55.56 and the cost rate is ($80,000 + $5,000) ÷ 1,440 = $59.03. The hourly rate is $59.03 × 1.20 = $70.83. The day rate is 8 × $70.83 = $566.67, the weekly income is 30 × $70.83 = $2,125.00, the monthly income is $2,125.00 × 52 ÷ 12 = $9,208.33, the annual revenue is $70.83 × 1,440 = $102,000.00 and the profit is $85,000 × 20% = $17,000.00.
| Case | Hourly rate | Weekly | Monthly | Annual revenue | Profit |
|---|---|---|---|---|---|
| Default ($80,000, 30 h/wk, 48 wks, $5,000, 20%) | $70.83 | $2,125.00 | $9,208.33 | $102,000.00 | $17,000.00 |
| Salary $60,000 | $54.17 | $1,625.00 | $7,041.67 | $78,000.00 | $13,000.00 |
| Salary $100,000 | $87.50 | $2,625.00 | $11,375.00 | $126,000.00 | $21,000.00 |
| Billable 40 h/wk | $53.13 | $2,125.00 | $9,208.33 | $102,000.00 | $17,000.00 |
| Billable 20 h/wk | $106.25 | $2,125.00 | $9,208.33 | $102,000.00 | $17,000.00 |
| 52 weeks/yr | $65.38 | $1,961.54 | $8,500.00 | $102,000.00 | $17,000.00 |
| Expenses $0 | $66.67 | $2,000.00 | $8,666.67 | $96,000.00 | $16,000.00 |
| Expenses $10,000 | $75.00 | $2,250.00 | $9,750.00 | $108,000.00 | $18,000.00 |
| Margin 0% | $59.03 | $1,770.83 | $7,673.61 | $85,000.00 | $0.00 |
| Margin 30% | $76.74 | $2,302.08 | $9,975.69 | $110,500.00 | $25,500.00 |
| Margin 10% | $64.93 | $1,947.92 | $8,440.97 | $93,500.00 | $8,500.00 |
Setup: salary $80,000, billable hours 30 a week, weeks 48 a year, expenses $5,000, margin 20%.
Line 1 — the billable hours. 30 × 48 = 1,440 hours a year.
Line 2 — the base rate. $80,000 ÷ 1,440 = $55.56.
Line 3 — the cost rate. ($80,000 + $5,000) ÷ 1,440 = $59.03.
Line 4 — the hourly rate. $59.03 × 1.20 = $70.83.
Line 5 — the day rate. $70.83 × 8 = $566.67.
Line 6 — the weekly income. $70.83 × 30 = $2,125.00.
Line 7 — the monthly income. $2,125.00 × 52 ÷ 12 = $9,208.33.
Line 8 — the annual revenue. $70.83 × 1,440 = $102,000.00.
Line 9 — the profit. $85,000 × 20% = $17,000.00.
Reverse: a $100.00/hr rate needs a $115,000.00 salary; a $75.00/hr rate needs an $85,000.00 salary; a $50.00/hr rate needs 42.50 billable hours a week; an $80.00/hr rate needs a 35.53% margin (exact 35.5294%); a $75.00/hr rate needs $10,000.00 of expenses; the max salary at a $65.00/hr rate is $73,000.00.
Salary $60,000: the base rate is $60,000 ÷ 1,440 = $41.67 and the cost rate is $65,000 ÷ 1,440 = $45.14, so the rate is $54.17. Weekly $1,625.00, monthly $7,041.67, annual revenue $78,000.00, profit $13,000.00.
Salary $100,000: the base rate is $69.44 and the cost rate is $72.92, so the rate is $87.50. Weekly $2,625.00, monthly $11,375.00, annual revenue $126,000.00, profit $21,000.00.
Billable 40 h/wk: the billable hours are 40 × 48 = 1,920, so the rate falls to $53.13 — but the weekly income stays $2,125.00 and the monthly income stays $9,208.33. More billable hours mean a lower rate, not more money, because the annual target does not move.
Billable 20 h/wk: the billable hours are 20 × 48 = 960, so the rate rises to $106.25 — and the weekly income is still $2,125.00. Fewer billable hours mean a higher rate, not less money, for the same reason.
52 weeks/yr: the billable hours are 30 × 52 = 1,560, so the rate falls to $65.38. The weekly income is $1,961.54 and the monthly income is $8,500.00, because the same $102,000.00 is now spread over more weeks. The annual revenue stays $102,000.00.
Expenses $0: the cost rate is the base rate, $55.56, so the rate is $66.67. Weekly $2,000.00, monthly $8,666.67, annual revenue $96,000.00, profit $16,000.00.
Expenses $10,000: the cost rate is $90,000 ÷ 1,440 = $62.50, so the rate is $75.00. Weekly $2,250.00, monthly $9,750.00, annual revenue $108,000.00, profit $18,000.00. Five thousand more of expenses is worth $4.17 an hour.
Margin 0%: the rate is the cost rate, $59.03, and the profit is $0.00. Weekly $1,770.83, monthly $7,673.61, annual revenue $85,000.00 — you cover your costs and nothing else.
Margin 30%: the rate is $59.03 × 1.30 = $76.74. Weekly $2,302.08, monthly $9,975.69, annual revenue $110,500.00, profit $25,500.00. Ten more points of margin are worth $5.91 an hour.
Margin 10%: the rate is $59.03 × 1.10 = $64.93. Weekly $1,947.92, monthly $8,440.97, annual revenue $93,500.00, profit $8,500.00.
Reverse — the other way round: a $100.00/hr rate needs a $115,000.00 salary; a $75.00/hr rate needs an $85,000.00 salary; a $50.00/hr rate needs 42.50 billable hours a week; an $80.00/hr rate needs a 35.53% margin (exact 35.5294%); a $75.00/hr rate needs $10,000.00 of expenses; the max salary at a $65.00/hr rate is $73,000.00.
The model assumes the salary, billable hours, weeks, expenses and margin you enter. It assumes every billable hour is paid at the same rate, and it assumes the weeks you enter are the weeks you actually work — holidays and time off are already out. It leaves out tax, health insurance, retirement contributions, unpaid admin and marketing time, late payments and scope creep, so the rate here is the rate before tax, not the money you keep. The 20% default margin is a starting point, not a rule: a freelancer with high fixed costs or slow months needs more. Rounding convention: money is rounded to cents, hours and the margin are shown to two decimals, and all figures are computed from unrounded values, rounded only for display.
| Output | Formula | What it means |
|---|---|---|
| Billable hours/year | billable hours/week × weeks/year | 1,440 hours. |
| Base rate | salary ÷ billable hours | $55.56. |
| Cost rate | (salary + expenses) ÷ billable hours | $59.03. |
| Hourly rate | cost rate × (1 + margin) | $70.83. |
| Day rate (8 h) | hourly rate × 8 | $566.67. |
| Weekly income | hourly rate × billable hours/week | $2,125.00. |
| Monthly income | hourly rate × hours × 52 ÷ 12 | $9,208.33. |
| Annual revenue | hourly rate × billable hours | $102,000.00. |
| Profit | (salary + expenses) × margin | $17,000.00. |
| Salary for a $100/hr rate | $100 × billable ÷ (1 + margin) − expenses | $115,000.00. |
| Salary for a $75/hr rate | $75 × billable ÷ (1 + margin) − expenses | $85,000.00. |
| Billable h/wk for a $50/hr rate | (salary + expenses) × (1 + margin) ÷ ($50 × weeks) | 42.50 h/wk. |
| Margin for an $80/hr rate | $80 ÷ cost rate − 1 | 35.53% (exact 35.5294%). |
| Expenses for a $75/hr rate | $75 × billable ÷ (1 + margin) − salary | $10,000.00. |
| Max salary at a $65/hr rate | $65 × billable ÷ (1 + margin) − expenses | $73,000.00. |
| Salary $60,000 | same model, $60,000 | Rate $54.17, weekly $1,625.00, monthly $7,041.67, annual $78,000.00, profit $13,000.00. |
| Salary $100,000 | same model, $100,000 | Rate $87.50, weekly $2,625.00, monthly $11,375.00, annual $126,000.00, profit $21,000.00. |
| Billable 40 h/wk | same model, 40 h/wk | Rate $53.13, weekly $2,125.00, monthly $9,208.33, annual $102,000.00, profit $17,000.00. |
| Billable 20 h/wk | same model, 20 h/wk | Rate $106.25, weekly $2,125.00, monthly $9,208.33, annual $102,000.00, profit $17,000.00. |
| 52 weeks/yr | same model, 52 weeks | Rate $65.38, weekly $1,961.54, monthly $8,500.00, annual $102,000.00, profit $17,000.00. |
| Expenses $0 | same model, $0 expenses | Rate $66.67, weekly $2,000.00, monthly $8,666.67, annual $96,000.00, profit $16,000.00. |
| Expenses $10,000 | same model, $10,000 expenses | Rate $75.00, weekly $2,250.00, monthly $9,750.00, annual $108,000.00, profit $18,000.00. |
| Margin 0% | same model, 0% margin | Rate $59.03, weekly $1,770.83, monthly $7,673.61, annual $85,000.00, profit $0.00. |
| Margin 30% | same model, 30% margin | Rate $76.74, weekly $2,302.08, monthly $9,975.69, annual $110,500.00, profit $25,500.00. |
| Margin 10% | same model, 10% margin | Rate $64.93, weekly $1,947.92, monthly $8,440.97, annual $93,500.00, profit $8,500.00. |
The math is exact for the numbers you enter: the billable hours are the hours times the weeks, the cost rate is the salary plus the expenses divided by those hours, and the rate is the cost rate times one plus the margin. What the model cannot do is count your billable hours for you: check them honestly, because a freelancer who bills 20 hours a week at a 40-hour rate earns $1,416.67 a week, not $2,125.00. It assumes every hour is paid at the same rate and leaves out tax, insurance, retirement, unpaid admin, late payments and scope creep. For the paycheck the rate replaces, see take-home pay calculator; for what a raise on that salary would be worth, see pay raise calculator.
Bright Side Kit. "Freelance Rate Calculator: Hourly, Day & Project 2026." https://brightoolbox.com/freelance-rate-calculator/ Accessed October 25, 2026.Divide your target salary plus expenses by your billable hours, then add your profit margin. At the defaults the billable hours are 30 × 48 = 1,440 a year, the base rate is $80,000 ÷ 1,440 = $55.56, the cost rate is ($80,000 + $5,000) ÷ 1,440 = $59.03, and with a 20% margin the rate is $59.03 × 1.20 = $70.83 an hour.
$70.83 an hour at 30 billable hours a week and 48 weeks a year. The salary alone would be $55.56 an hour, but the business costs $5,000 a year and the 20% margin has to come from somewhere too, so the rate that actually replaces the salary is $70.83. At that rate the day rate is $566.67, the weekly income is $2,125.00 and the monthly income is $9,208.33.
Because the rate moves to compensate. At 40 billable hours a week the rate falls to $53.13, and at 20 hours it rises to $106.25 — but the weekly income stays $2,125.00 in both cases, and the annual revenue stays $102,000.00. The hours only change how the same annual target is split across hours, not how much money it is.
20% is a sensible starting point; the calculator defaults to it. At 0% margin the rate is $59.03 and the profit is $0.00 — you cover your costs and nothing else. At 10% the rate is $64.93 and the profit is $8,500.00. At 30% the rate is $76.74 and the profit is $25,500.00. The margin is what pays for slow months, unpaid admin and growth.
$115,000.00 at 30 billable hours a week, 48 weeks a year, $5,000 of expenses and a 20% margin. The rate formula runs backwards: salary = rate × billable hours ÷ (1 + margin) − expenses, so $100 × 1,440 ÷ 1.20 − $5,000 = $115,000.00. A $75.00 rate needs an $85,000.00 salary.
42.50 hours a week at an $80,000 salary, 48 weeks a year, $5,000 of expenses and a 20% margin. Hours = (salary + expenses) × (1 + margin) ÷ (rate × weeks), so $85,000 × 1.20 ÷ ($50 × 48) = 42.50. That is more than a full working week of billable time, which is why a $50 rate does not replace an $80,000 salary for most people.
Your rate falls to $65.38, but your pay stays the same. Working 52 weeks gives 1,560 billable hours instead of 1,440, so the rate drops from $70.83 to $65.38. The weekly income falls to $1,961.54 because the same $102,000.00 of annual revenue is now spread over more weeks — and the monthly income is $8,500.00. More weeks never means more money at the same target; it means a lower rate.