Freelance Hourly Rate to Salary Calculator

Freelancers don't get paid vacation. Enter your rate and realistic billable hours to see your true annual income.

Equivalent gross annual income before business costs and tax.
Per month
Per week
Total billable hours / year

Why a freelance hourly rate isn't the same as a salary

A $50/hour employee working 40 hours over 52 weeks would earn $104,000 — but a freelancer at $50/hour rarely bills 40 hours every week. You lose time to admin, marketing, sick days, and gaps between clients, and you get no paid vacation.

That's why this calculator asks for billable hours (not total hours worked) and working weeks (subtract the weeks you take off). The result is your realistic gross income.

Don't forget business costs

The figure shown is before self-employment tax, health insurance, software, and equipment — costs an employer would normally cover. As a rough rule, freelancers often need a rate 25–40% higher than an employee's equivalent to net the same amount.

Frequently asked questions

How do I convert my hourly rate to an annual salary?

Multiply your hourly rate by your billable hours per week, then by the number of weeks you actually work per year. Example: $45 × 30 hours × 48 weeks = $64,800.

How many billable hours should a freelancer expect?

Most full-time freelancers bill 25–35 hours in a 40-hour week. The rest goes to admin, sales, and unpaid tasks, so using 40 billable hours overstates your income.

Should my freelance rate be higher than an employee's?

Yes. Because you cover your own taxes, insurance, tools, and unpaid time off, a common guideline is to charge 25–40% more per hour than the equivalent salaried wage.