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User Friendly Hourly Rate Calculator

Struggling to determine your hourly rate? Harvest offers a user-friendly hourly rate calculator that simplifies the process, ensuring accurate and fair compensation for your work.

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What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
$
Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

How this hourly rate calculator works

It works back from the income you need to the rate you must bill, accounting for the hours you can't bill.

  • Billable hours/year = working weeks × hours per week × billable %.
  • Break-even rate = (target income + business expenses) ÷ billable hours.
  • Recommended rate = break-even plus a 20% buffer for taxes, slow periods, and profit.

Raising your billable percentage or trimming expenses lowers the rate you need.

User Friendly Hourly Rate Calculator by Harvest

Explore Harvest's calculator to determine hourly rates with ease, factoring in salary, expenses, and billable hours for accurate compensation.

Screenshot of Harvest's user-friendly hourly rate calculator interface.

User Friendly Hourly Rate Calculator FAQs

  • To calculate your hourly rate from your salary, divide your annual salary by 2,080, which represents a 40-hour workweek over a year. Adjust this rate to factor in business expenses and taxes for a more accurate figure.

  • Freelancers should consider their desired salary, business expenses, non-billable hours, and competitive industry rates. For instance, many freelancers only bill 50-70% of their total hours, so rates should account for this.

  • Harvest offers flexible rate settings that allow you to tailor hourly rates based on project types and expenses. This enables accurate billing and helps freelancers determine fair compensation for their work.

  • Yes, Harvest allows you to track overtime by creating dedicated tasks for it. You can apply different rates to overtime work, helping you understand its impact on overall earnings.

  • The average hourly rate for freelancers in the U.S. is around $62.54, with most falling between $60 and $68 per hour. Rates vary by industry and specialization.

  • Hourly rates are influenced by location and industry. For example, living costs in regions like San Francisco can demand higher rates, while specialized sectors like IT may command rates from $20 to $150 per hour.

  • The "Times Three Model" is a guideline where an employee's annual salary is multiplied by three to determine the revenue needed, helping set a profitable hourly rate to clients.