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Billable Rate Calculator
Find the hourly rate you need to charge to hit your income goal — accounting for taxes, benefits, utilization rate, and business expenses. For contractors, consultants, and freelancers.
>> INCOME GOAL
What you want to take home after taxes
Health insurance, retirement, etc. (0 if employer-covered)
>> SCHEDULE
48 = 4 weeks off
% of hours that are billable
>> OVERHEAD
Self-employment taxes + income tax (US contractors: ~30-40%)
Software, equipment, co-working, etc.
>> YOUR RATE
Minimum rate
$136.90
covers costs exactly
Recommended
$164.29
+20% buffer for gaps
Target rate
$165.00
rounded to nearest $5
Billable hours / yr
1,440
48 wks × 40 hrs × 75%
Gross revenue needed
$197,143
before taxes & overhead
Annual overhead
$18,000
benefits + business expenses
Tax budget
$59,143
at 30% effective rate
Rate check
✓ Strong mid-to-senior range. Competitive for specialized technical or consulting work.