Using our Hourly Rate Calculator, you can find out the hourly rate you must charge based on your expected annual salary and working time (including holidays). This tool is suitable for determining your hourly freelance rate or converting your annual salary into hourly wage.
As a freelancer, determining your hourly rate can decide what you will make in a year. It is better to plan ahead and use this calculator to determine the right amount of hourly rate that can get you a good annual salary.
For a good annual salary, you may want to account for your expenses, medical cover, as well as savings.
Here is the breakdown of different components and the formula used to calculate the Hourly Rate and wages:
Desired Annual Salary = The amount of Annual salary you want to live comfortably.
Work Hours Per Day = The amount of hours you want to work on working days.
Working Days in a Week = The number of days you work every week.
Holidays Per Year = The number of annual public working holidays given in your country (apart from weekends).
Hourly Rate is calculated for a given annual salary based on the total working hours in a year. The total working hours is determined by total working days (exclude holidays and weekends) and work hours per day.
Working Weeks = (365 - Holidays Per Year) / 7
Total Work Hours = Working Weeks * Working Days in a Week * Work Hours Per Day
Hourly Rate = Desired Annual Salary / Total Work Hours
There are other ways to calculate Hourly rate, however this method is the most appropriate as it takes into account, annual paid/public holidays too.