Freelance Rate Increase Calculator
Compare your current hourly rate with the rate needed for your annual revenue goal, then adapt a client email template.
Free to use. No signup. Amounts are in USD. Calculations run in your browser.
Set your rate scenario
The example starts with $75/hour, 20 billable hours a week, and 48 working weeks. Change these to match your plans.
Total client billings before expenses and taxes. This is not a take-home income target.
Include paid client work. Exclude unpaid admin, marketing, and time off.
Allow for holidays, illness, and gaps between projects. 48 weeks is an example assumption.
Your rate scenario
Suggested hourly rate for this scenario
$104.17/hr
Increase from your current rate
38.9%
Annual revenue at the suggested rate
$100,003.20
Annual revenue at your current rate
$72,000.00
Your plan includes 960 billable hours per year. The target-only rate is approximately $104.1667/hour. The suggested rate keeps your current rate as a minimum.
This assumes every planned billable hour is sold and paid. It does not predict client demand, unpaid invoices, expenses, or taxes.
Client email template
Hi [CLIENT NAME], Starting [DATE], my hourly rate for [NEW WORK / AGREED SCOPE] will change from $75.00 to $104.17 (a 38.9% increase). [ADD A BRIEF, ACCURATE REASON FOR THE CHANGE.] I appreciate our working relationship. Please let me know if you would like to discuss how this applies to upcoming work. [YOUR NAME]
Replace the placeholders with accurate details and check the notice and pricing terms in your agreement before sending. A calculator result does not justify a market-rate claim.
How the calculation works
- Annual billable hours = weekly billable hours × working weeks.
- Target hourly rate = gross annual revenue target ÷ annual billable hours.
- The suggested rate is the highest of your current rate, target rate, and optional inflation scenario, rounded up to the next cent.
- Projected revenue uses that same rounded hourly rate × annual billable hours.
Example: a $72,000 revenue target, 20 billable hours a week, and 48 working weeks requires $75/hour. At a current rate of $50/hour, that is a 50% increase.
The optional inflation scenario compounds one constant annual assumption over elapsed months. For historical US purchasing-power changes, use the BLS CPI inflation calculator.
Rate increase questions
Does this tell me the market rate for my services?
It calculates an income-target scenario. Compare the result with your service, client budget, scope, and demand. It does not use a market salary or freelance-rate dataset.
Why use fewer than 52 working weeks?
A full year can include holidays, illness, and time without client projects. Use a realistic number of working weeks and paid hours rather than assuming every hour is billable.
How do I explain a rate increase to a client?
Use the template as a starting point. State the new rate, effective date, and work it covers. Add a truthful reason and discuss existing commitments. Our guide to raising freelance rates covers communication options.
Setting a rate from scratch? Try the freelance rate calculator. Check a fixed-price job with the project profitability calculator.