Finance Tools
Contractor Hourly Rate Calculator
Estimate the hourly rate you should charge as a contractor or freelancer based on your target annual income, billable hours, expenses, and taxes.
Inputs
This estimates a suggested contractor hourly rate from your take-home goal, expenses, billable hours, and an estimated tax rate.
Your after-tax income goal.
Software, equipment, insurance, etc.
Only hours you can invoice (not admin time).
Example: 48 weeks (4 weeks off).
Use a decimal (0.25 = 25%).
Results
This is a simplified estimate. Real taxes and deductions vary. Use it as a starting point for pricing.
Suggested Hourly Rate: $97.22 / hour
Billable Hours per Year: 1200.00
Revenue needed
$116666.67
Estimated tax (on profit)
$26666.67
Estimated take-home (after tax)
$80000.00
How to use this contractor hourly rate calculator
- Enter your target annual take-home income.
- Estimate billable hours per week and weeks per year.
- Add annual business expenses.
- Set an estimated tax rate to compute a suggested hourly rate.
Example
If you want $80,000 take-home per year, expect 25 billable hours/week for 48 weeks, have $10,000 expenses, and estimate 25% taxes, this tool shows:
- Required pre-tax revenue to hit your take-home goal.
- Total billable hours per year.
- Suggested hourly rate to charge clients.
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- Hourly to After-Tax Salary Calculator
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- Self-Employment Tax Calculator
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