Freelance Hourly Rate Calculator
Estimate what to charge clients per hour based on your annual target income, business expenses, billable hours, and vacation targets.
Turn income goals into a realistic rate.
Don't underprice your services. Factoring in vacations, buffers, and monthly overhead is key to staying profitable.
Estimate a sustainable hourly rate.
Enter your income goals and business assumptions below. Lunio calculates a suggested rate and a minimum rate to keep you profitable.
How much you want to earn annually before income tax.
Software subscriptions, tool costs, insurance, bookkeeping fees, etc.
Plan for admin time, sales calls, and learning blocks that you can't bill directly.
Cushion for taxes, business development, slow months, and emergencies.
Enter your assumptions to calculate.
Calculation Results
Outputs update instantly based on inputs.
How to figure out what to charge as a freelancer
A sustainable freelance rate must account for your desired take-home salary, business overhead costs, and the reality that not every working hour is billable.
Many independent professionals set their hourly rate by dividing their target salary by 2,000 hours (the standard 40-hour work week). However, this fails to account for vacation time, sick leave, tax set-asides, and non-billable business administration tasks.
Why billable hours matter
Remember to plan for non-billable overhead time to keep your freelance business sustainable:
- • Plan for admin and invoicing time
- • Account for gaps between client sprints
- • Protect vacation weeks and sick days
Common freelance pricing mistakes
Ignoring business expenses
Your hourly rate must absorb all software subscriptions, professional services, hardware costs, and office leases.
Overestimating billability
Most freelancers bill 20–30 hours per week. The remaining 10–20 hours are spent on marketing, sales, and administration.
Skipping a business buffer
Adding a buffer (usually 15-20%) protects your income during dry seasons, client payment delays, and unexpected tax adjustments.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add your desired annual income target and total annual business overhead, apply a safety buffer, and divide the sum by your annual billable hours.
How many billable hours should I assume?
It depends on your freelance style. Most freelancers calculate their targets using a conservative estimate of 20 to 30 billable hours per week.
Can I use this calculator in Canada?
Yes. This rate calculator has been specifically designed to assist Canadian independent professionals, contractors, and freelancers.
Ready to bill clients at your new rate?
Create and send professional invoices, track payment progress, and stay GST/HST ready without standard accounting bloat.