Hourly Rate Calculator
Default 46 (excluding holidays)
Expenses, marketing, contingencies
Hourly rate (without overhead)
21,74 €/h
Hourly rate (with overhead)
28,26 €/h
Equivalents
Daily
173,91 €
Monthly
3333 €
Quarterly
10.000 €
Hours/year
1840 h
Frequently Asked Questions
Hourly rates, overhead and calculations for freelancers and professionals
How is the hourly rate calculated from the annual salary?
Divide the annual salary by the hours worked in a year (hours/week × weeks worked). Consider effective weeks (deducting holidays and vacation: ~46 weeks out of 52). Add overhead (office expenses, software, marketing) to obtain the necessary market rate.
What is overhead?
Overhead includes all indirect costs: office rent, software, hardware, marketing, training, insurance, loss of revenue due to illness/vacations. A typical overhead for a freelancer is 20-40% above the net cost.
Which weeks to consider for the calculation?
A year has 52 weeks. Subtracting 4 weeks of vacation, 2 of holidays and 1-2 of illness/unexpected events, you arrive at about 44-46 working weeks. Multiplied by the weekly hours gives the annual billable hours.
How is the hourly rate worked out?
By dividing the yearly income you want to reach by the hours you can really bill in a year, and adding your overheads on top: software, professional advice, marketing and equipment.
How many working weeks are there in a year?
A year has 52 weeks, but taking out holidays, public holidays and the unexpected, between 44 and 46 get billed. Multiplied by the weekly hours they give the hours to divide the income by.
Why does the rate have to cover costs as well?
Because turnover is not income: software, the accountant, training and equipment all come out of the same figure. If the rate does not carry them, what you actually earn is lower than you planned.