Billable hours matter
Freelancers rarely bill every working hour. Sales, admin, learning, unpaid proposals and time off reduce billable capacity.
Example
If you want 80,000 after expenses, expect 12,000 in annual expenses, reserve 25% for tax and can bill 1,200 hours, the planning rate is about 102.22 per billable hour.
How to use the result
Treat the result as a minimum planning rate, then compare it with market rates, project risk and client value. Some work is better priced as a project rather than by the hour.
Limitations
This is not tax advice. Local taxes, retirement contributions, benefits, insurance, unpaid time off and currency differences can materially change the rate you need.
Last reviewed: 2026-05-17