Time & Payroll · Free

Hourly Rate Calculator

Calculate your minimum billable hourly rate from salary, overhead, and profit margin. Free hourly rate calculator for freelancers and service businesses.

pay rate calculatorfreelance rate calculatorbillable rate calculator
Share this tool
wks
hrs
%
%

Results

Total billable hours/year2,000 hrs
Base rate (salary only)€30.00
With overhead (20%)€37.50
Minimum billable rate (25% profit)€50.00
Daily rate (8h)€400.00
Weekly rate€2000.00

⚠️ This is a minimum viable rate. Adjust upward based on market rates, specialist skills, and client value delivered.

Get more tools like this

Free tips for running your service business better. No spam, unsubscribe anytime.

Take it further

Track billable hours, invoices, and payments in Tregovia

14-day free trial · No credit card required · All modules included

Start free trial

Frequently asked questions

How do I calculate my hourly rate from salary?

Hourly rate = Annual salary ÷ (Weeks per year × Hours per week). For example: €60,000 ÷ (50 × 40) = €30/hr base rate. Add overhead and profit margin to get your billable rate.

How much should I add for overhead?

Self-employed professionals typically add 15–30% for overhead (insurance, software, equipment, admin time). Employees don't need to add this as the employer covers it.

What profit margin should a freelancer charge?

20–30% is a healthy target for freelancers and service businesses. This covers risk, investment, and business growth beyond just covering costs.