Hourly rate to hit an income goal.
Annual income goal ÷ (working weeks × billable hours per week) = required hourly rate.
Billable hours are usually 60–70% of worked hours; the rest is admin, marketing, and unpaid work.
New freelancers often set rates based only on take-home salary target, forgetting the overhead a traditional employer normally absorbs — which is why building in a buffer for taxes, benefits, and non-billable time matters so much here.
$100,000 goal ÷ (46 wks × 25 hrs) = $86.96/hour.
25–30 is a common sustainable target. Full 40 billable rarely lasts long-term.
Yes — freelancers cover self-employment tax, health insurance, retirement. Add ~30% to a target salary before dividing.
At least annually, or sooner if your skills, demand, or cost of living shift meaningfully — rates that felt right a year or two ago often fall behind without a periodic review.