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01Freelance & Business toolCalculated result
Hourly Rate Calculator
The rate you must charge to hit your income target.
100% FreeRuns instantlyNo watermark
- 1Enter detailsAdd the numbers for your scenario.
- 2CalculateVootkit updates the result instantly.
- 3ReviewCheck totals, notes and breakdowns.
Private by designProcessed on your device where possible.
Works on any deviceDesktop, tablet and mobile browsers.
No installationOpen the page and start working.
Always free coreUse the free plan for everyday tasks.
How to use Hourly Rate Calculator
Vootkit updates the result instantly.
02Check totals, notes and breakdowns.
03Copy the answer into your workflow.
04Your files stay private
Your work is processed locally in your browser where possible and is never added to a Vootkit upload library.
Learn more about privacyThe mistake that ends most freelance careers is arithmetic, not talent: dividing a target salary by 2,080 hours and quoting the result. That number assumes every working hour is paid, and roughly half of them are not.
What Hourly Rate Calculator does
Works backwards from the income you want to the rate you must charge, after business costs, tax set-aside, and the fact that only some of your week is billable.
Billable hours is the field that changes the answer most. Twenty-five billable hours in a forty-hour week is normal, not lazy — the rest is admin, pitching, invoicing and unpaid revisions.
What the calculation accounts for
| Working weeks | 46 by default — leaves six weeks for holiday, illness and quiet spells |
|---|---|
| Billable ratio | 25 hours of 40 is typical for solo freelancers; agencies target 60-70% |
| Tax set-aside | Self-employment tax and income tax, held back rather than spent |
| Business costs | Software, hardware, insurance, accountant, workspace, pension |
| Not included | Sick pay, paid holiday, employer pension — you now fund these yourself |
| Rule of thumb | A freelance rate near double the equivalent salaried hourly rate is normal, not greedy |
Detailed steps
- Enter the income you want to take home before tax.
- Add your annual business costs — all of them, including the ones you pay monthly and forget.
- Set a realistic billable hours figure. Track a week honestly before guessing.
- Compare the result with what you currently charge. The gap is usually the answer to why the year felt hard.
Worth knowing
The six weeks of non-working time in the default is not generosity, it is the holiday and sick leave an employer used to pay for. If you set working weeks to 52 you have quietly decided never to be ill and never to take a break, and the rate you calculate will be the rate that makes both of those mandatory. Every week you take off after that comes directly out of the income figure you started from.
Frequently Asked Questions
Why is my rate so much higher than what I earned as an employee?
Because an employee’s salary is only part of what they cost. On top of it sat employer pension contributions, payroll taxes, paid holiday, sick pay, equipment, software and a desk. As a freelancer you fund all of it from your rate, which is why roughly double the equivalent salaried hourly figure is a normal starting point rather than an aggressive one.
How many billable hours should I assume?
Track it for two weeks before deciding. Most solo freelancers land between 20 and 28 billable hours in a nominal 40-hour week once admin, sales, invoicing, emails and unpaid revisions are removed. Assuming 40 is the single fastest way to set a rate that cannot produce the income you planned around.
What tax percentage should I set aside?
It depends entirely on your country, your structure and your income band, and it usually catches people out in year one when a full bill arrives at once. A common approach is to hold back 25-30% into a separate account the moment each invoice is paid, then reconcile with an accountant rather than discovering the number in January.
Should I charge hourly at all?
Often not — hourly billing penalises you for getting faster, which is the opposite of what experience should do. But you still need the hourly figure, because it is what tells you whether a fixed-price project is worth taking. Estimate the hours, multiply, and compare to the quote before agreeing to it.
Is Hourly Rate Calculator free?
Yes. The Vootkit free plan includes 5 tool runs a day. Upgrade to Vootkit Pro for unlimited daily use, an ad-free workspace and saved workflows.
Are my files uploaded?
No. Hourly Rate Calculator runs entirely in your browser — your file is processed on your own device and never sent to a server. There is nothing for us to store or delete.
Do I need to install anything?
No. Hourly Rate Calculator works in any modern browser on desktop, tablet or phone. Open the page and start.
How often can I use it? Is there a daily limit?
On the free plan you get 5 tool runs a day. When you reach the limit you'll see a prompt to upgrade, and it resets the next day. Vootkit Pro removes the cap entirely for unlimited daily use.
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This tool processes everything locally in your browser. You can disconnect from the internet after the page loads and it will still work.