Formula
Required gross income = Net income ÷ (1 − tax rate). Required revenue = Gross income + overhead, adjusted by the profit buffer. Hourly rate = Required revenue ÷ annual billable hours.
X-Facture Finance Engine
Hourly & Freelance Billing Rate Calculator
Determine your sustainable client billing rates based on take-home income, tax reserves, overheads, and billable capacity.
Income Goals & Capacity
$
Desired net cash salary in bank%
Income tax + Social Security/Medicare$
Software, hardware, insurance, CPAweeks
Non-working weeks per yearhrs/wk
Real billable work (excl. admin)%
Emergency reserve & growth marginBilling Rate Recommendations
Minimum Hourly Rate$121Day Rate: $968 / 8-hr
Annual Gross Revenue Goal$141,578Monthly: $11,798 / mo
Revenue Allocation Breakdown
Net Salary Take-Home:$80,000
Tax Reserve Allocation:+$31,111
Business Overheads:+$12,000
Required Annual Billing:$141,578
Calculator guide
Freelance Hourly Rate Calculator
Calculate a sustainable freelance hourly rate from income goals, expenses, taxes and billable hours.
35finance tools
How it works
The model starts with the freelancer’s desired take-home income, reserves an estimated tax amount, adds annual overhead and a business buffer, then divides the required revenue by realistic billable hours.
Assumptions & notes
- Tax rates are user assumptions and are not jurisdiction-specific tax advice.
- Billable hours exclude non-billable sales, administration and downtime.
- The displayed day rate is based on an 8-hour day.