Rate Modeling
Set the hourly rate that actually clears your goal
Work backwards from a take-home target, business expenses, time off, and an estimated tax set-aside to a minimum and recommended hourly rate.
Take-home targetTax set-asideBillable ratio
Your inputs
Adjust values and watch rates update instantly.
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Saved in your browser only. No sign-up required.
Rate planning model
Use this calculator to set a defensible floor rate and a buffered quote based on your income targets and workload assumptions. Final tax treatment and take-home still depend on your jurisdiction and business setup.
- Enter your own estimated tax set-aside % (we do not assume any country tax rates).
- Review processor fees, VAT/GST, and platform costs separately if they affect your pricing.
Process
How it works
- 01
Enter take-home goal
The annual cash you want to keep after expenses and taxes.
- 02
Add expenses and time off
Include subscriptions, equipment, and realistic non-billable weeks.
- 03
Pick a billable ratio
How much of your week you actually invoice for.
- 04
See your floor + quote rate
A minimum to never go below and a recommended rate to quote.
Frequently Asked Questions
What does "estimated tax set-aside %" mean?+
It is the percentage of your gross revenue you plan to set aside for taxes (and similar mandatory contributions). The right number varies by jurisdiction, income, deductions, and entity type, so this tool asks you to provide your own estimate.
Does this include VAT, GST, or sales tax?+
No. Consumption taxes can be collected from clients separately, depending on your invoicing setup and local rules. This calculator focuses on your target take-home and your estimated tax set-aside.
What is a "billable ratio" and how do I choose it?+
Billable ratio is the share of your working time that you expect to invoice. The rest goes to admin, sales, learning, and breaks. If you are unsure, pick a conservative number and adjust after a few weeks of real tracking.
Should I use the minimum or recommended rate?+
The minimum rate targets your inputs exactly. The recommended rate adds a buffer for downtime, scope creep, and volatility. Many freelancers quote using the recommended rate, then refine based on demand and delivery risk.
Does this include payment processing or platform fees?+
No. If you use a payment platform, fees can reduce your net take-home. Model fees separately (for example, using a pricing/fee calculator) and bake them into your rate or invoice amount.
Is this tax or legal advice?+
Use this calculator to set a working floor rate and a stronger quoted rate before you send proposals. Final tax treatment and take-home still depend on your jurisdiction, deductions, and business setup.
Is my data private?+
Your inputs are calculated in your browser and saved to your device for convenience. This page does not require sign-up.
