Effective Hourly Rate Calculator

That project fee looks great — but what did you really earn per hour? Enter the fee, the hours you billed, the unpaid hours it actually took, and any expenses, to see your true effective hourly rate — and whether it beats your target. Updates as you type.

How it works

effective rate = (fee − expenses) ÷ (billable + unpaid hours)

• Count every hour — calls, emails, admin, revisions, travel. Undercounting these is the most common freelancer mistake.
• Subtract expenses — software, materials, subcontractors, payment fees.
• Compare across gigs to find which clients and project types actually pay, and which to drop.

An educational estimate to compare gigs. It doesn’t deduct tax or overhead beyond the expenses you enter. Not financial advice.

FAQ

What is an effective hourly rate?

It is what you actually earn per hour once you count every hour a project really takes — including unpaid admin, emails, revisions and travel — and subtract expenses. A $2,000 project that takes 55 total hours and $100 of costs is an effective rate of about $34.5/hour, not the headline number you might assume.

Why does my effective rate matter more than the project fee?

A big fee can hide a poor rate if the work eats far more time than you billed for. Tracking effective hourly rate across gigs shows which clients and project types actually pay well, so you can drop the time-sinks and chase the profitable work.

What hours should I include?

Everything the project consumes: the billable work plus the unpaid time — scoping calls, emails, admin, revisions, travel and research. Freelancers routinely undercount this, which is why a gig that looks great per the invoice can pay poorly per hour.

How do I use the target rate?

Enter the hourly rate you want to earn. The calculator compares it to your effective rate and tells you whether the project beats your target or falls short, and by how much — a quick gut-check before you take on similar work again.

More calculators: freelance rate calculator, hourly to salary calculator, freelance invoice generator, and the full tools list.