Hourly Rate Calculator
Calculate a realistic hourly rate – including taxes, health insurance, business costs and billable hours
As of September 2026Basis: § 32a, § 35 EStG, GewStGCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
What you want to have per month net to live on. Tap to type · drag sideways to adjust.
I work days per week, hours per day, with vacation days and sick days per year.
Non-billable working time30% not billable · 5 training days
Share of working time that cannot be billed
Insurance & retirement provisionstatutory health insurance · pension €400/month · buffer 10%
Legal form & taxes35 years · freelance profession
Business costs (monthly)€780 per month
Recommended hourly rate (net)
per hour, excl. VAT
€90.00
€90.00For €4,000 net per month you need €90.00 per hour (€103.50 incl. VAT) – at 1,176 billable hours per year.
Annual revenue breakdown
- Net income€48,00047%
- Taxes€17,02617%
- Social security€15,13615%
- Business costs€8,0198%
- Reserves€14,09814%
- Day rate
- €696.00
- Annual revenue goal
- €102,279.00
- Working days/year
- 210 days
- Billable hours
- 1176 h/year
- Billable share
- 70%
- Billable hours/day
- 5.6 h
RZ-26 · headon.pro
Tip for freelancers:
What does +10 EUR/hour get you? +€11,760.00 / year
At 1176 billable hours: (before tax, approx. +€7,056.00 net)
Don't underestimate non-billable time
Plan enough vacation and sick days
Build reserves for slow months
Don't forget retirement provision
How this was calculated
Taxes & contributions (annual)
- Income tax
- €17,026.00
- Health insurance
- €12,206.00
- Long-term care insurance
- €2,929.00
- Effective tax rate
- 18.3%
Taxes, social insurance, business costs and reserves are added on top of the target net income. The required annual revenue divided by the billable hours gives the hourly rate, rounded up to the next €5.
Legal basis: 2026 income tax scale (§ 32a EStG), trade tax with credit (§ 35 EStG), 2026 contributions for voluntarily insured people.
The right hourly rate for freelancers
Many freelancers and self-employed professionals make the mistake of setting their hourly rate too low. They compare it to their former employee salary without accounting for the additional costs of self-employment.
Our calculator shows you which hourly rate you really need to reach your income goal - taking into account all costs, taxes and non-billable time.
Costs freelancers often underestimate
- 1Non-billable timeAcquisition, writing proposals, bookkeeping, admin - often 20-40% of working time
- 2Vacation and illnessAs self-employed, there's no paid time off - you need to budget for it yourself
- 3Social securityFull contribution to health and long-term care insurance, no employer share
- 4Retirement provisionNo statutory pension - you have to provide for it yourself
- 5ReservesSlow periods, payment defaults, unforeseen expenses
How your hourly rate is calculated
The formula is simple, but the input values need to be realistic:
- Desired net income
- €48,000/year
- + Taxes (estimated)
- €20,000/year
- + Social security
- €8,000/year
- + Business costs
- €6,000/year
- + Reserves (10%)
- €8,200/year
- = Total requirement
- €90,200/year
- ÷ Billable hours
- 1,200 h/year
- = Hourly rate
- €75.17
With typical figures (€4,000 net income target, 1,200 billable hours/year), you quickly end up at hourly rates of €80-120 - significantly more than many beginners charge.
Billable vs. total working time
A common mistake: out of 8 hours of work a day, you can't bill 8 hours. Realistic billable rates are 60-75% of your working time. The rest goes towards acquisition, admin and unpaid project work.
Typical billable hours per year
- 60% rate
- approx. 1,050 h/year - conservative, for beginners with heavy acquisition effort
- 70% rate
- approx. 1,230 h/year - realistic for established freelancers
- 75% rate
- approx. 1,320 h/year - optimistic, with well-established processes
- 80%+ rate
- approx. 1,400+ h/year - only with external support (VA, accountant)
Calculation: with 220 working days/year (365 - 104 weekend days - 11 public holidays - 30 vacation days) and 8 hours/day, that's 1,760 total hours. At 70% billability, 1,232 billable hours remain.
Day rate vs. hourly rate
Many freelancers prefer to bill using day rates. This has advantages: clients find it harder to compare directly with employee salaries, and you have more flexibility in scheduling your time.
- Hourly rate
- €100
- × Hours per day
- 8 h
- = Day rate
- €800
The rule of thumb is: day rate = hourly rate × 8 hours. At an hourly rate of €100, that's €800 per day. Some freelancers use a lower factor (e.g. × 6) to make longer project days more attractive.
When should you raise your hourly rate?
Regularly adjusting your hourly rate is not just legitimate but necessary to keep pace with rising costs and growing expertise.
Reasons to raise your hourly rate
- Consistently booked at 100%
- You have to turn down requests - a clear sign your price is too low
- Clients accept without negotiating
- If no one negotiates, your price is probably too low
- Built up specialized knowledge
- Expert knowledge justifies higher rates
- Cost of living rising (inflation)
- An annual adjustment of 3-5% is standard
- Expanded qualifications
- Certificates, new skills or technologies give you negotiating leverage
- Demonstrable added value
- Faster delivery, higher quality or better results
Tip: Only raise prices for new projects or clients. Existing clients should be informed in good time (3-6 months in advance) and may be given a transition period.
Frequently asked questions
Everything important about calculating your hourly rate
How is the hourly rate calculated for freelancers or self-employed professionals?
The hourly rate results from: (desired net annual income + income tax + health/long-term care insurance + business costs + reserves) ÷ billable hours per year. Important: only use billable time - typically 60-75% of working time (approx. 1,050-1,320 h/year at 220 working days). The rest goes towards acquisition, admin and continuing education.
How high should my hourly rate be as a freelancer in 2026?
As a rough guide: with a net income target of €4,000/month and 1,200 billable hours, most freelancers land at a minimum hourly rate of €80-120. IT freelancers often achieve €90-150, while copywriters and designers tend towards €60-90. What matters is realistically budgeting for all cost items - not using your former employee salary as a baseline.
What are billable hours and how many are realistic?
Billable hours are the hours you can directly invoice to clients. With a 40-hour week and 220 working days per year (after vacation and public holidays), that comes to 1,760 total hours. Of these, 60-70% are realistically billable: 1,056-1,232 hours. The rest goes towards acquisition, proposals, bookkeeping and unpaid project time.
Should I bill by day rate or hourly rate as self-employed?
Day rates are common in many IT and consulting settings because clients find it harder to compare them directly to employee wages. Rule of thumb: day rate = hourly rate × 8. At €100/h, that's an €800 day rate. For short engagements and creative professions, hourly rates or flat fees are often more practical.
Which health insurance should I choose as self-employed?
Self-employed professionals choose between statutory health insurance (GKV, approx. €800-900/month at mid-range income, including long-term care insurance) and private health insurance (PKV, which varies significantly by plan and age). Health insurance costs must be fully factored into your hourly rate - there is no employer contribution.
When should I raise my hourly rate?
Typical signals for a price increase: you're consistently booked at 100%, clients accept quotes without negotiating, you've built up specialized knowledge, or inflation has raised your cost of living. An annual adjustment of 3-5% is standard practice. Larger jumps (10-20%) can be justified by clear added value such as faster delivery or demonstrable results.