Freelance Income Goal Calculator
Work out the hourly rate you need to hit your target take-home income.
Enter your numbers
Example: 600000
Example: 15
Example: 48
Example: 30
Example: 20
Recent
Formula
How the calculation works
The gross needed is the target net income divided by one minus the tax rate, because tax is taken from the gross.
Billable hours are the working weeks times hours, cut by the overhead share that goes to admin and marketing.
The hourly rate is the gross needed divided by those billable hours.
Common mistakes
- Billing every working hour: admin, marketing and breaks are real and must come out of the billable count.
- Forgetting the tax, which means the take-home is far below the hourly rate you quote.
When to use it
- Use it to set an hourly rate that actually reaches your target income.
- It is not a contract rate; it does not cover leave, sickness or unpaid gaps.
Worked example
A 600000 yearly target with 15% tax, 48 weeks, 30 hours a week and 20% non-billable time needs about 612.75 per hour.
Common questions
Why raise the income for tax?
The target is take-home, so the gross you must bill has to cover the tax as well.
What is non-billable time?
It is time spent on admin and marketing that you cannot charge a client for.
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