How it works
Hourly floor = (target income + overhead) ÷ (1 − reserve rate) ÷ annual billable hours.
Input definitions
- Target annual personal income
- Enter the value in the labeled unit.
- Annual business overhead
- Enter the value in the labeled unit.
- Tax reserve (%)
- Enter the value in the labeled unit.
- Working weeks per year
- Enter the value in the labeled unit.
- Billable hours per week
- Enter the value in the labeled unit.
A worked example
- Target annual personal income
- 60000
- Annual business overhead
- 12000
- Tax reserve (%)
- 25
- Working weeks per year
- 46
- Billable hours per week
- 25
Assumptions & limits
Uses only the values entered. Rates are illustrative inputs, not live quotes, legal rules or personalised advice. Check provider terms, local requirements and measurements before acting.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-19. Content checked against the stated method and examples. Our verification approach.
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Common questions
Why use billable rather than total hours?
Sales, administration and unpaid leave consume time. The rate must be spread over hours clients actually pay for.
How does Freelance minimum hourly rate calculate the result?
Hourly floor = (target income + overhead) ÷ (1 − reserve rate) ÷ annual billable hours.
What should I verify before using Freelance minimum hourly rate?
Uses only the values entered. Rates are illustrative inputs, not live quotes, legal rules or personalised advice. Check provider terms, local requirements and measurements before acting.