Freelance Hourly Rate Calculator

Set a sustainable freelance hourly rate that covers your income goal, business expenses, taxes and non-billable time.

What is the Freelance Hourly Rate Calculator?

Freelancers pay their own expenses and taxes and cannot bill every hour. Pricing by salary ÷ 2,000 hours usually undercharges.

How does it work?

Required revenue = desired take-home ÷ (1 − tax rate) + expenses. Billable hours = weekly hours × billable share × working weeks. Hourly rate = revenue ÷ billable hours.

Formula

Rate = (Income ÷ (1 − tax) + Expenses) ÷ (Hours × Billable% × Weeks)

Example

For ₹15 lakh take-home, ₹1.5 lakh expenses, 10% tax, 40 hours a week, 70% billable and 6 weeks off, the minimum rate is about ₹1,411 an hour.

Frequently asked questions

Should I charge GST?

If your turnover from services exceeds ₹20 lakh (₹10 lakh in some special-category states), you must register and charge 18% GST on most services. Export of services can be zero-rated under LUT.

What is presumptive taxation?

Eligible professionals can declare 50% of gross receipts as income under Section 44ADA, which often keeps effective tax low.

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