How the formula works
Monthly income goal × 12 gives an annual target. Divide by realistic billable weeks and hours to get a raw hourly floor, then multiply by a tax/overhead buffer so unpaid work and self-employment costs are not ignored.
Worked example
Need $6,000/month after a 30% buffer mindset, with about 48 working weeks and 25 billable hours per week. Annual goal ≈ $72,000. Billable hours ≈ 1,200. Raw rate ≈ $60/hour; after a 30% buffer the published floor lands near $78/hour. That number is a planning floor, not a market prophecy.
FAQ
Why not just divide salary by 2,000 hours?
Because freelancers do not bill every working hour. Vacation, sales, admin, and sick days shrink capacity. Dividing by 2,000 underprices the business.
What tax buffer should I use?
It depends on your country and entity type. Many solo freelancers start around 25–40% for taxes and overhead combined, then adjust with an accountant.
Is the result my final client rate?
Treat it as a floor. Niche skills, rush work, and scarce availability can sit higher once the floor covers your life and unpaid time.
Can I switch currency?
Yes. Use the currency selector in the header. The choice stays in your browser and does not change the page URL.
Next: turn the rate into a client number with the project quote calculator, or read how much to charge in 2026.