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Real-world workflow

Use Case

Convert a Salary Target to a Freelance Hourly Rate

Turn a desired annual income into a defensible freelance hourly rate — accounting for unbillable weeks instead of assuming 40×52.

16 August 2026 By Tools.Town Team 5 min read

Steps

  1. Open the Hourly to Salary Calculator.
  2. Switch to Salary → Hourly mode and enter the annual income you want.
  3. Lower hours/week to your realistic billable hours (25–30 is typical, not 40).
  4. Lower weeks/year to your billable weeks (44–48 covers vacation and client gaps).
  5. The resulting hourly figure is your floor rate — quote above it to cover taxes, tools, insurance, and unpaid revisions.

Example

Target $90,000/yr at 28 billable hours × 46 weeks = 1,288 hours → ~$70/hr floor. The naive 40×52 math says $43/hr — a 38% underquote.

Watch out

  • The output is gross. Self-employment tax and health insurance come out of it; many freelancers add 25–40% on top of the floor.
  • Comparing against a full-time offer? Convert the offer with the same tool in Hourly → Salary mode, then remember the offer also includes benefits.

Frequently Asked Questions

Why lower the weeks per year?

Freelancers do not bill 52 weeks. Vacations, gaps between clients, admin, and sales time are unbillable. Using 44–48 weeks (and 25–30 billable hours/week) produces a rate that actually hits your income target.