Free Australian Tool

Freelance Hourly Rate Calculator

Stop guessing your freelance rates. Use our free Australian hourly rate calculator to figure out exactly what you need to charge. Factor in your desired take-home pay, business expenses, and actual billable hours to build a profitable and sustainable sole trader business.

Financial Goals

How much money do you want to make and spend?

$

Software, insurance, internet, travel, accounting fees, etc.

$

Time Allocation

How much time will you actually spend working for clients?

Account for holidays, public holidays, and sick leave (e.g. 48 weeks instead of 52).

Remember to exclude time spent on admin, marketing, pitching, and accounting.

Minimum Hourly Rate

$91.67/ hr
Target Annual Revenue (Gross)
$110,000.00
Total Billable Hours
1,200 hrs/year

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How to Calculate Your Freelance Hourly Rate in Australia

Setting your freelance hourly rate is one of the most critical steps in running a successful sole trader business in Australia. If you set it too low, you risk burnout and struggling to cover your basic living expenses. Set it too high without the experience to back it up, and you might struggle to win clients.

Why you can't just divide your old salary by 52

Many new freelancers make the mistake of taking their previous full-time salary and dividing it by 52 weeks and 38 hours. This formula doesn't work for freelancers for several reasons:

  • Unpaid Admin Time: You'll spend hours on marketing, bookkeeping, and pitching clients that you can't bill for.
  • No Paid Leave: You don't get paid annual leave, sick leave, or public holidays.
  • Business Expenses: You are now responsible for your own software subscriptions, insurance, internet, and equipment.
  • Superannuation: You need to factor in your own super contributions (currently 11.5% in Australia).

Gross vs Net Income

If you want to take home a specific amount of money (Net Income), you must account for the income tax you will owe the ATO. Our calculator allows you to toggle between Gross and Net income, automatically grossing up your target revenue so you don't fall short at tax time.

The Billable Hours Reality

A standard full-time job is 38 hours per week. As a freelancer, a highly productive week might only yield 20-25 billable hours. Be realistic about your time allocation to ensure your hourly rate is sustainable.