Freelance / Studio Hourly Rate Calculator
Find the rate your practice actually needs — built from the income you want, the cost of running a studio, tax, and the hours you can truly bill.
Your rate is a business decision, not a guess
Plenty of talented artists and designers set their rate by copying whoever they can find online, then wonder why the money never adds up. The problem is that a rate copied from someone else carries none of your costs, your tax situation, or your realistic billable hours. The number that matters is the one derived from your own figures.
Recalculate it at least once a year, and whenever your overhead jumps or your billable hours drop. A rate that was fine when you worked from a spare room may be well under water once you rent a studio — the maths, not your comfort level, should tell you when it's time to raise your prices.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Work backwards from the income you need. Add the take-home pay you want to the annual overhead of running your practice, optionally gross the total up for the tax you'll owe, then divide by the number of hours you can actually invoice in a year. That figure — not what a competitor charges — is the rate that keeps you solvent.
Why can't I just bill 40 hours a week?
Because much of your working week isn't billable. Marketing, admin, email, quoting, bookkeeping, learning, and unpaid revisions all take real hours you can't send an invoice for. Many freelancers bill only half to two-thirds of the hours they work. If you set your rate as though every hour is billable, you'll come up short every month — so enter the hours you can realistically invoice, not the hours you're at the desk.
What counts as overhead?
Every cost of being in business that isn't billed directly to a client: studio or coworking rent, software subscriptions, hardware, insurance, website and portfolio hosting, professional memberships, marketing, and materials you don't pass on. Total these for the year and include them, or your rate will only cover your take-home and leave the business itself unfunded.
Should I add tax to my rate?
Yes — set money aside for it. As a freelancer you typically owe income and self-employment tax on your profit, and it isn't withheld for you. Entering an effective tax percentage grosses your required revenue up so that what's left after tax still covers your target income and overhead. Treat the set-aside as non-negotiable, ideally moved to a separate account as you get paid.
Is this the price I quote clients?
It's your floor, not your ceiling. The calculator gives the minimum rate that covers your income, overhead, and tax across a realistic number of billable hours. You can and often should charge more for rush work, specialised skills, or high-value projects — but you should rarely charge less, because below this line the work is costing you money.
Educational estimate only, not tax or financial advice. Tax treatment varies by country and situation — confirm your set-aside with a qualified accountant.