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How to calculate Freelance hourly rate

The Freelance hourly rate formula, with plain worked examples you can check yourself.

Freelance hourly rate = (T + E) ÷ H

Worked examples

T = 3500 · E = 1500 · H = 100Freelance hourly rate = 50
T = 11500 · E = 500 · H = 160Freelance hourly rate = 75
T = 7000 · E = 1000 · H = 160Freelance hourly rate = 50

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Business Models.

Related terms

FranchiseCompetitive moatCash cowFreemiumProduct-market fitSubscription model

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