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Freelancer Hourly Rate

A freelancer hourly rate calculator helps you set a sustainable rate based on what you want to earn (salary), your business expenses (software, hardware, insurance, marketing), the tax burden (CPP, income tax, GST/HST), and — most importantly — the number of hours you can actually bill. Most freelancers can only bill 60-70% of their working hours; the rest goes to admin, marketing, learning, and unbillable client work.

Enter your target annual take-home, your expenses, your billable hours, and your province. We'll show the hourly rate you need to charge. Most freelancers discover they're undercharging by 30-50% when they run the math.

💵 Income Goals

💸 Annual Business Expenses

⏰ Time

📌 5 Freelancer Rate Tips

📚 Resources for Freelancers

Top picks from Amazon — books and guides that pair well with the rate you just calculated.

💼 Freelancing Playbook Top books on pricing, clients & running a freelance business (affiliate link) 🧾 Self-Employment Tax Guides for freelancers on taxes, deductions & quarterly payments (affiliate link) ⏱️ Meeting Cost Calculator Turn meeting hours into dollars — see what every sync actually costs your freelance rate 📆 Late Payment Interest Charge clients for overdue invoices — calculate interest on late payments 📊 Break-Even Calculator Find your break-even point — know exactly when your freelance business turns profitable 💰 Profit Margin Calculator Calculate your profit margin — see what percentage of revenue you actually keep as a freelancer 📐 Markup Calculator Price your freelance services with confidence — calculate markup from cost to selling price 🏢 Overhead Cost Calculator Track your total business overhead — rent, software, utilities — so your freelance rate covers real costs

Disclaimer: This calculator provides estimates for educational purposes only. Actual freelance rates depend on your industry, experience, location, and market demand. Self-employment tax rates vary by jurisdiction. Not tax or financial advice — consult a CPA for personalized guidance.

Frequently Asked Questions

How do I calculate my freelance hourly rate?

Formula: (target annual income + business expenses + tax savings buffer) ÷ billable hours per year. Most freelancers aim for $75-200/hour depending on specialty, market, and experience. Don't forget to account for unpaid admin time.

What if I'm just starting out?

If you have less than 2 years of experience, charge 60-75% of the market rate to build your portfolio, then raise rates 15-25% per year until you hit market rate. Don't undercharge permanently — it's hard to raise rates later.

Should I charge hourly or per project?

Both work. Hourly is safer for new freelancers and ongoing work. Per-project rewards efficiency (the faster you work, the more you earn per hour) but requires accurate scoping. Many freelancers use hourly for ongoing retainers and project rates for one-off work.

How many hours can I bill as a freelancer?

Most freelancers realistically bill 1,000-1,400 hours per year. A 40-hour work week × 48 weeks = 1,920 hours, but realistically only 60-70% of that is billable. The rest is admin, marketing, learning, and unbillable work.

Should I include GST/HST in my rate?

Yes — display your rate as the total the client pays, then set aside the GST/HST portion (5%/13%/15%) for remittance to CRA. Most freelancers quote 'GST included' and remit quarterly.