How to Calculate Your
Hourly Freelance Rate
Are You Beginner in the World of Freelancer?
Confused About How to Calculate Your Freelance Rate Per Hour?
We Will Show You How to Calculate Freelance Hourly Rate Easily!
● Every new freelancer will have a question in mind… What Should I Charge to Survive? What Should Be My Freelance Hourly Rate? ● Scroll the next pages to see the calculation.
Step 1
I want to make $50K per year!
Determine Your Target Annual Salary
$50,000/ Year
Step 2
Now You are self employed, So you will be having new expenses and overhead. It Includes office supplies, internet, electricity bills, project management tools, phone bills, Paid softwares, promotion and marketing, allowances for uncollected payments, tax, food and accommodation etc. Suppose all this expenses cost you
=$30,975/ Year
Step 3
Now, Calculate Annual Salary = Target Salary + New Expenses = $50,000 + $30,975 = $80,975
Step 4
Calculate Your Number of Billable Hours per Year! While Calculating the number of hours, you should consider the below factors: ● ● ●
Vacations Holidays Sick Days etc.
Working hours per year Three weeks vacation Seven Holidays Five sick days
= 2080 = 120 (15 Eight Hours Days) = 56 (7 Eight Hours Days) = 40 (5 Eight Hours)
Total Off Hours Per Year = 216 Hours
To calculate total billing hours, follow the below calculation: Total billing hours = Working Hours Per Year – Total Off Hours Per Year = 2080 – 216 = 1864 Hours
The non-billable activities that you will be performing are signing new clients each week, making phone calls emailing, marketing, performing an administrative task and much more. Assuming non-billable time as 25% calculate the actual billable hours per year. The actual billable hours per year = 1864*0.75 = 1398 Hours
Total Billing Hours = 1398 Hours
Step 5
Divide the total annual salary by billable hours per year. Total annual salary/actual billable hours = $ 80975 / 1398 hr = $ 57.92 Per hour
Yay….! You Got Your Hourly Freelance Rate! That is $ 57.92 Per hour That can be rounded to
= $ 58 / Hour
Visit https://www.gicree.com/ And Hire Dedicated Freelance Professionals for Your Business. Contact US: contact@gicree.com Explore our Blog: https://www.gicree.com/blog/