Freelance hourly revenue target
Divide desired pretax income plus overhead by annual billable hours.
How this works
Required hourly revenue = (annual pretax personal income target + annual business overhead) ÷ (billable weeks per year × billable hours per week). Only billable time belongs in the denominator; nonbillable administration is not automatically added.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults require $60,000 + $12,000 = $72,000 over 46 × 25 = 1,150 billable hours. Divide $72,000 by 1,150. With all reset-default inputs, required hourly revenue: $62.61.
- Annual pretax personal income target ($)
- 60000
- Annual business overhead ($)
- 12000
- Billable weeks per year
- 46
- Billable hours per week
- 25
- Required hourly revenue
- $62.61
Scope and assumptions
This is a revenue-target calculation, not a market-rate or profitability recommendation. Taxes, reserves, benefits, unpaid invoices and other costs are included only if you account for them in the targets. Billable hours and weeks are assumptions, not guaranteed work.
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