Calculate your freelance hourly rate without underselling your time

A simple way to connect revenue goals, costs, billable time, and real tracked hours before setting your rate.

KronomaJune 20, 20265 min read

A freelance hourly rate is not just a desired salary divided by hours. It also needs to cover costs, non-billable work, admin, and quieter periods.

Start from your annual revenue target

Define the income you want to reach over a year, then add professional costs, insurance, software subscriptions, and recurring expenses.

This gives you the revenue that must be covered before estimating billable hours.

Not every working hour is billable. Sales, admin, quotes, accounting, and learning all take time.

Tracking time helps reveal how much of your week is actually spent on client work.

The first calculation is only a hypothesis. After a few weeks, compare estimated time, real time, and the amount invoiced.

If projects often overflow, the issue may be pricing, scope, or the type of work sold.

FAQ

What rate should I choose when starting out?

Start with your profitability threshold, then compare it with market rates in your specialty.

Does my hourly rate need to appear on every invoice?

No. For fixed-fee work, you can invoice the service while tracking hours internally.

When should I review my hourly rate?

Review it when tracked data shows that projects are less profitable than expected, or when your expertise and demand increase.

Kronoma helps you understand real time spent by client and project before adjusting your rates.