Hourly Rate Calculator
Enter the yearly income you want after tax, your billable hours, your downtime, overhead and tax rate. You get the minimum hourly, day and week rate to charge.
Software, equipment, insurance, accounting.
Your assumed effective rate. This is not tax advice.
Minimum hourly rate
₹3,342
Over 1,320 billable hours a year
- Day rate (8 hours)
- ₹26,738
- Week rate
- ₹1,00,267
- Revenue needed per year
- ₹44,11,765
Saved results stay in this browser only. Clearing your browser data removes them.
Why your rate has to be higher than a salary
Not every working hour can be billed. Admin, sales and finding the next client take time, and holidays and sick days are unpaid when you are self-employed.
Your rate also has to cover business costs (overhead) and tax, which is why the rate is worked backwards from the income you want to keep.
The tax rate is your own assumption. Use your accountant's figure. The result is a minimum, so price above it when you can.
The formula
Revenue needed = income after tax ÷ (1 − tax%) ÷ (1 − overhead%). Hourly rate = revenue needed ÷ (billable hours per week × (working weeks − unpaid weeks)).
Common questions
How do I work out my freelance hourly rate?
Start from the yearly income you want after tax, add back tax and overhead, then divide by the hours you can actually bill in a year.
What are billable hours?
Hours you can charge a client for. They are usually fewer than the hours you work, because admin and finding work are not billed.
What should I use for overhead?
Add up yearly costs such as software, equipment, insurance and accounting, and divide by the revenue you expect. The result is your overhead percentage.
Is this tax advice?
No. The tax rate is an assumption you enter. Ask your accountant what applies to you.
Track the time you bill
SparkyProjects is project and task tracking for small teams, with time tracking, timesheets and billing modes from fixed price to retainer.
Try SparkyProjects (opens in a new tab)