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Freelance Rate Calculator

Calculate your minimum viable freelance hourly rate.

28 hrs/week billable

Software, equipment, insurance, marketing

Your minimum hourly rate

₹2,321/hr

₹278,571/month · ₹21,429/yr gross

Low (avoid)
₹1,741/hr
Target
₹2,321/hr
Premium
₹3,482/hr

Derived rates

hrs → ₹92,857
hrs → ₹46,429/mo

How this is calculated

Annual desired income: ₹1,800,000 → After 30% tax + 20% overhead = ₹3,085,714 gross needed

Billable hours: 120/month × 48 working weeks/year ÷ 4.3 weeks/month = 1329 hrs/year

Minimum rate: ₹3,085,714 ÷ 1329 hours = ₹2,321/hr

Set a rate that actually pays you what you deserve

Most freelancers undercharge because they only think about hourly rate in isolation. This calculator works backwards from your desired take-home income and factors in the real costs of self-employment: taxes, overhead, non-billable time, and time off — so you know the floor below which you should never go.

From hourly rate to project and retainer pricing

Once you have your minimum hourly rate, the derived rates section shows you what to charge for fixed-price projects and monthly retainers. Use the Low/Target/Premium zones to anchor your negotiating range for different client types.

Frequently asked questions

How is the minimum hourly rate calculated?
Your desired net monthly income is multiplied by 12 to get an annual target. This is then grossed up for tax (1 ÷ (1 − tax rate)) and overhead (× (1 + overhead %)). That gross amount is divided by your total billable hours per year to get the minimum hourly rate.
What should I include in business overhead?
Overhead covers all your business running costs as a percentage of revenue: software subscriptions, hardware/equipment depreciation, professional insurance, accountant fees, marketing spend, office rent, and any other non-personal expenses. Freelancers typically run 15–30% overhead.
What are typical billable hours for a freelancer?
Most freelancers bill 50–70% of their working hours. Out of 160 monthly working hours, expect 80–120 to be billable — the rest goes to admin, sales, marketing, learning, and non-billable client time. Use 100–120 hours for a conservative estimate.
What is the difference between Low, Target, and Premium rates?
Target is your calculated minimum — below this you make less than your desired income. Low (75% of target) shows where you risk undercharging. Premium (150% of target) is what you should charge for specialist work, rush projects, or long-term clients who value consistency.
How do I price a project instead of by the hour?
Enter the average number of hours a typical project takes in the 'Project rate' field. The calculator multiplies this by your hourly rate to give a fixed-price quote. Add 15–20% buffer for scope creep in complex projects.

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