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Hourly Rate Calculator
Work out what to charge per hour in under a minute. Enter the take-home pay you want, your billable hours, expenses and taxes — and get the rate that actually covers all of it. Free, no signup. Already know your rate? Price a whole job with our job pricing calculator.
Work out your hourly rate
Six numbers in, one number out: the minimum you need to charge per hour to hit your take-home goal. Every figure is an editable default — plug in your own and the rate updates as you type.
What should you charge per hour?
Most solo operators undercharge because they price off a salary number, not the real cost of running a one-person business. This calculator works backwards from the take-home you actually want — after unpaid admin time, expenses, and taxes — to the rate you need to quote.
This is a planning estimate, not tax or financial advice. It assumes the tax set-aside covers your income and self-employment tax — confirm your real rate with an accountant. Once you know your number, the hard part is quoting it confidently and getting paid on time.
How to use the calculator
Five numbers decide your rate. Adjust each one to match your real business and the rate updates as you type.
Take-home pay
The money you actually want in your pocket for the year, after tax. Start from the salary you would need, not what you hope to bill.
Billable hours
Only the hours a client actually pays for. Quoting, driving, admin and marketing are real work but unpaid, so most solo operators bill far fewer hours than they work.
Working weeks
Weeks per year you take on paid work, minus holidays, sick days and slow periods. Fewer weeks means each billable hour has to carry more.
Expenses
Everything the business spends in a year — fuel, tools, insurance, software, materials, phone. These come out before you ever pay yourself.
Tax & margin
Set aside a percentage for income and self-employment tax, then add a margin on top as a buffer and for reinvestment. The rate at the bottom covers all of it.
Why your rate is higher than your old wage
The number this calculator gives you will look high next to an hourly wage. That is the point — an employee wage hides everything an employer normally pays on top.
As a solo operator you cover all of it yourself: unpaid admin time, gaps between jobs, your own tax, insurance, equipment and time off. A rate that only matches your old wage quietly loses money on every one of those.
- Unpaid hours. For every billable hour you spend more time quoting, invoicing, driving and chasing payment — none of it paid directly.
- Expenses first. Fuel, tools, insurance and software come out before you pay yourself, so revenue has to clear them before any take-home starts.
- Your own tax. No employer withholds it for you. Setting aside a realistic percentage now avoids a nasty bill later.
- A margin to survive. A buffer covers slow months, a broken tool or an unpaid invoice without sinking the business.
Ready to quote it on real jobs?
Knowing your hourly number is step one. The next is turning it into clean quotes and getting paid without chasing. Put it to work in the job pricing calculator, or the house cleaning price calculator if you clean homes.
See which field-service tools fit a one-person operation best — independently tested, with real 2026 pricing.
FAQ
Is the hourly rate calculator free?
Yes — it is completely free with no signup, account or email required. Every number is an editable default you can change to match your own business.
Why is the rate so much higher than my hourly wage?
Because it covers everything an employer normally pays on top of a wage: your unpaid admin time, business expenses, your own income and self-employment tax, and a margin for slow months. A rate that only matches an employee wage loses money once those are counted.
What counts as a billable hour?
Only hours a client actually pays for. Quoting, driving, invoicing, marketing and admin are real work but unpaid, so your billable hours are usually far lower than the hours you actually work — often around 25 of a 40-hour week.
How is the tax set-aside used?
The calculator grosses up your take-home so that, after the tax percentage you enter, you are left with the amount you wanted. It assumes that percentage covers both income and self-employment tax — confirm your real rate with an accountant.
What is the difference between margin and tax here?
Tax is money you set aside for the government out of your pre-tax pay. Margin is an extra buffer added on top of all your costs — it cushions slow periods, unpaid invoices and reinvestment, and it is profit that stays in the business.
Should I use one rate for every job?
The rate here is your floor — the minimum that keeps the business healthy. You can charge more for rush work, difficult access or specialised jobs, but going below it means that job is subsidised by the rest of your work.