The maths
How this is worked out
Each row multiplies the hourly rate out across an eight-hour billed day and a five-day week. The monthly column scales a week by 52 ÷ 12, and the annual column uses 1,000 billable hours rather than a full-time year, because non-billable time is real.
Day = hourly × 8 · Week = day × 5 · Month = week × 52 ÷ 12 · Year = hourly × 1,000
Worked example
A worked example
At $85 an hour the chart gives $680 a day, $3,400 a week, and $85,000 a year. A salaried job paying $85,000 is not equivalent, because that salary includes paid holiday and employer contributions this figure does not.
Different working pattern? The day rate calculator takes your own hours and billable total.
Read this before you quote
What the number does and does not cover
- The annual column assumes 1,000 billable hours. If you bill more, scale it up proportionally — 1,200 hours is 20% higher across every row.
- These are revenue figures, not income. Business costs and tax come out of them, which is what the rate floor calculator works backwards from.
- Comparing a row against a salary is misleading without adjusting for employer overhead. The salary comparison does that adjustment properly.
- Currency is shown in dollars, but the arithmetic is unit-agnostic — read the figures as whichever currency you invoice in.
Questions
Hourly Rate Conversion Chart: questions freelancers ask
How much is $50 an hour per year?
At 1,000 billable hours it is $50,000 of revenue before costs and tax. At a full-time 2,080 hours it would be $104,000, but that assumes every working hour is billed, which no freelancer sustains.
Why does the chart use 1,000 billable hours?
Because it is a realistic solo year: roughly 46 working weeks at around 22 billable hours a week. Charts built on 2,080 hours flatter every rate on them.
Is this before or after tax?
Before. Every figure is revenue the business receives. Tax and business costs are deducted from it, which is why the rate floor calculator starts from take-home pay instead.