Freelance Hourly Rate for $120,000 Target Income
Find out what hourly rate a freelancer needs to charge to reach $120,000 in annual income after expenses.
How to use this tool
- Enter the annual income you want the business to pay you.
- Add your yearly business expenses (software, insurance, equipment, fees).
- Enter your realistic billable hours for the year — far below total worked hours.
- Read the hourly rate plus the equivalent day and weekly rates.
Use this calculator to find the hourly rate you need to charge as a freelancer to hit your $120,000 income target.
Frequently asked questions
- Why can't I just divide my old salary by 2,080?
- Because that ignores business expenses and unbillable time. Freelancers carry their own software, insurance and equipment costs, and can only invoice a fraction of the hours they work, so the rate has to be markedly higher than the salaried equivalent.
- How many billable hours should I assume?
- Be conservative. Even busy full-time freelancers bill roughly 1,000–1,400 hours a year once you remove sales, admin, breaks and time off. Using a lower number raises the rate, which protects you when work is slow.
- Does this include taxes?
- No. The target income is the pre-tax amount you want the business to generate. If you want the rate to also fund a tax reserve, increase your target income or use a tax set-aside calculator alongside it.