How to set your hourly rate
Most freelancers and consultants undervalue their work because they only think about the hours they bill — not the hours they don't. A 40-hour week sounds like 2,000 hours per year, but realistically you only bill 1,200-1,400 hours after weekends, holidays, sick days, admin work, and business development.
The formula behind this calculator
Hourly Rate = (Target Net Income ÷ (1 - Tax Rate) + Annual Expenses) ÷ Billable Hours per Year
Example: To take home €60,000 net at a 30% effective tax rate with €15,000 in expenses and 1,260 billable hours, your gross needs to be €100,714, making your minimum hourly rate €80.
What the calculator doesn't include
This calculates the minimum sustainable rate. Premium pricing for senior expertise, rare specialisations, or higher-value outcomes can justify rates 2-5x this baseline. The calculator gives you the floor, not the ceiling.