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FREE HOURLY RATE CALCULATOR Hourly rate calculator.
Charge what the work needs.

Start from the income you need and your costs, allow for time you can’t bill, and get a break-even rate, a target hourly rate and a day rate.

Free. No signup. Runs in your browser.

Your numbers

What you want to take home before tax, or the salary cost for one person.
Software, insurance, equipment, accountant, office.
52 minus holidays, bank holidays and sick days.
Time you can charge to clients, after admin and sales.

Runs in your browser. Nothing you enter is sent to Angelwood or stored on a server.

Result

Hourly rate: £81.52

Hourly rate
£81.52
Day rate
£611.40
Break-even hourly rate
£65.22
Billable hours a year
1,104

How to use the calculator

  1. Target annual pay: what you want to earn before tax, or the salary cost of the person you’re pricing.
  2. Annual business costs: software, insurance, equipment, professional fees and premises.
  3. Working weeks: 52 minus holidays, bank holidays and an allowance for sickness.
  4. Billable share: the percentage of working hours you can charge to clients. Sales, admin and learning aren’t billable.
  5. Profit margin: what the business keeps on top of pay and costs.

The tool runs entirely in your browser. Nothing you type is sent to Angelwood or saved on a server.

The formula

  • Billable hours a year = working weeks × hours a week × billable share.
  • Break-even rate = (target pay + business costs) ÷ billable hours.
  • Hourly rate = break-even rate ÷ (1 − profit margin).
  • Day rate = hourly rate × hours in a working day.

Margin is profit as a share of the price, which is why the rate is divided by (1 − margin) rather than multiplied by (1 + margin).

Worked example

A consultant wants £60,000 a year, has £12,000 of costs, works 46 weeks of 40 hours and bills 60% of their time: 1,104 billable hours. Break-even is £72,000 ÷ 1,104 = £65.22 an hour. With a 20% margin the rate is £81.52 an hour, or £611.40 for a 7.5-hour day.

DO IT IN ANGELWOOD

See whether your rates are working.

Angelwood’s time reports show billable hours, utilisation and project profitability from the time your team tracks.

See time tracking and reports

GOOD QUESTIONS

Questions people ask.

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How do I calculate my freelance hourly rate?

Add the pay you need to your business costs, divide by the hours you can actually bill in a year, then add a profit margin. The calculator does this for you.

What billable percentage should I use?

Many freelancers and consultants bill between half and three-quarters of their working hours once sales and admin are counted. Track your own time for a few weeks to find your real figure.

Should I charge hourly or by day?

Day rates suit workshops and on-site work and reduce haggling over small amounts of time. Hourly suits short or unpredictable tasks. The calculator gives both.

Do I need to add VAT to my rate?

The calculator works on rates before tax. If you’re VAT-registered, add VAT on top when you invoice; the VAT calculator helps.

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