How We Calculate

The formulas behind each calculator, so you can check the maths and adjust the assumptions.

Last updated: 14 October 2026

Every calculator on RateRight uses simple arithmetic that runs in your browser. This page lists each formula and its assumptions. If you spot an error, please contact us.

Freelance hourly rate calculator

  1. Pre-tax income = take-home goal ÷ (1 − tax rate)
  2. Revenue needed = pre-tax income + yearly expenses
  3. Billable hours per year = billable hours per week × (52 − weeks off)
  4. Hourly rate = revenue needed ÷ billable hours per year
  5. Daily rate = hourly rate × billable hours per week ÷ 5

Assumptions: one combined tax rate applies to all your income, expenses are fixed for the year, and the year has 52 weeks. Read the full step-by-step guide.

Project quote calculator

  1. Work = hourly rate × estimated hours
  2. Buffer = work × buffer %
  3. Rush fee = (work + buffer) × rush fee %
  4. Quote = work + buffer + rush fee + project costs
  5. Deposit = quote × deposit %; balance = quote − deposit
  6. Effective hourly rate = (quote − project costs) ÷ estimated hours

Assumptions: project costs are passed on at cost, and the estimated hours are accurate. See how to price a freelance project.

Tax set-aside calculator

  1. Profit = yearly revenue − yearly expenses
  2. Yearly tax estimate = profit × tax rate
  3. Set-aside % = yearly tax estimate ÷ yearly revenue
  4. Monthly and quarterly amounts = yearly tax estimate ÷ 12 and ÷ 4
  5. Take-home = profit − yearly tax estimate

Assumptions: all expenses entered are deductible, and a single flat rate covers all taxes and contributions. Real tax systems can be progressive and more complex. See how much to save for taxes.

Salary to freelance rate calculator

  1. Revenue needed = salary × (1 + benefits % + self-employment cost %) + business expenses
  2. Billable hours per year = billable hours per week × (52 − weeks off)
  3. Freelance hourly rate = revenue needed ÷ billable hours per year
  4. Salary hourly rate = salary ÷ (job hours per week × 52)

Assumptions: the benefits and cost percentages are your own estimates of their value. See how to convert a salary to a freelance rate.

Profession calculators

The profession pages use the same hourly rate formula. Their starting values are illustrative examples chosen to show how the calculator works. They are not market data and you should replace them with your own figures.

Limitations

  • The calculators are simplified models. They ignore irregular income, inflation, currency changes, late payments and other real-world effects.
  • Currency choice only changes the symbol shown. No exchange rates are applied.
  • Results are rounded for display.
  • See the Disclaimer for how to use the results.