Find the hourly rate your take-home goal actually needs after tax and expenses, then quote any project from it in the same file.
Get it on Payhip →In short: This freelance pricing template does two jobs. It grosses your take-home goal up for your tax set-aside, adds business expenses and divides by the hours you can really bill to get a break-even rate, then prices on a true profit margin for the recommended rate. Then it turns that rate into a project quote.
Works in Microsoft Excel and in Google Sheets (File, Open, Upload). Inputs are the yellow cells; everything else is a live formula you can click and read.
The workbook ships with this example. These are its own results:
| Line | Result |
|---|---|
| 25 billable hours a week x 48 weeks | 1,200 billable hours |
| $80,000 take-home / (1 - 25% tax set-aside) | $106,666.67 before tax ($26,666.67 set aside) |
| ($106,666.67 + $12,000 expenses) / 1,200 | $98.89 break-even rate |
| Recommended rate at a 20% margin ($98.89 / 0.80) | $123.61 an hour |
| Profit per billed hour | $24.72, which is 20.0% of the rate |
| Project: 40 hours x $123.61 | $4,944.44 labour |
| + $150 software and materials | $5,094.44 |
| Project quote (+10% rush or complexity) | $5,603.89 |
Two notes on the maths. Expenses are added after the tax gross-up because business expenses are generally deductible, so you do not reserve tax on money spent running the business. And the 20% is a true margin: the rate is break-even divided by 0.80, so $24.72 of every $123.61 billed is profit, exactly 20%. Adding 20% on top instead ($98.89 x 1.20 = $118.67) would keep only 16.7%; the sheet prints the equivalent markup (25%) so you can see the difference. The 25% tax set-aside is an example, not tax advice: use your own rate.
Freelancers and solo consultants who bill by the hour or by the project and want a rate built from their own numbers rather than a market average. It is a pricing sheet, not a branded quote document. The freelance hourly rate guide covers tax reserves and billable hours in more depth, and the freelance quote template guide covers the document you send.
An honest comparison. A free template is the right choice if you only need a form to fill in, and software is the right choice if you need scheduling, invoicing or bank feeds. This file is for getting the number right.
| This spreadsheet | Free quote template | Invoicing and quoting software | |
|---|---|---|---|
| Works out your hourly rate from your goal | Yes | No, you type the rate | Rarely |
| Turns the rate into a project quote | Yes, same file | Totals only | Yes |
| Branded quote or invoice to send | No | Yes, that is its job | Usually |
| Where it runs | Your own Excel or Google Sheets file | Word, PDF or a spreadsheet | The vendor's app and account |
| Cost | $14.99 once | Free | Monthly subscription |
Get the free 50/30/20 Budget Starter and see exactly how the live formulas work — no risk, no card.
Work backwards from your target take-home pay. Add your business expenses and a tax buffer, then divide by the hours you can actually bill in a year (not 2,080 — usually far fewer). The Freelance Rate Calculator does this for you: enter your take-home goal, tax set-aside, billable hours per week, working weeks and annual expenses and it returns your break-even hourly rate, then prices on a true profit margin (break-even / (1 - margin)) for the recommended rate.
Estimate the hours the project needs, multiply by your true hourly rate, add any software or asset costs, then add a risk buffer for scope creep. The calculator turns your rate into a defensible project quote in seconds.
Yes — it works in Google Sheets and Microsoft Excel. Open or upload the file and start typing in the highlighted cells.
Yes, $14.99 one-time, no subscription. It's also included in the 7-tool bundle for $49.
Divide your income goal plus business expenses by the hours you can actually bill in a year, then add profit. In the sheet's example, $80,000 take-home with a 25% tax set-aside is $106,666.67 before tax; plus $12,000 of expenses over 1,200 billable hours that is $98.89 an hour to break even, and $123.61 at a 20% margin.
