Accountants Freelance Rate (Hourly) Calculator
Estimate an hourly freelance accounting rate that covers your target income, business costs, non-billable time and profit buffer.
Overview
This freelance accountant hourly rate calculator estimates the client rate needed to support your target annual income, business overheads, benefits allowance and planned non-billable time. It helps turn an annual revenue goal into a practical hourly pricing starting point.
How it works
The calculator first adds your chosen benefits allowance to your desired personal income. It then adds annual business overheads and applies your profit or contingency buffer to find a target revenue figure. Finally, it estimates your annual billable hours from your working weeks, weekly hours and billable-time percentage. Dividing required revenue by billable hours produces the suggested hourly rate.
How to use this calculator
- 1Enter the annual personal income you want your freelance work to provide.
- 2Add a percentage to replace employment benefits such as paid leave, pension and insurance.
- 3Estimate your annual business overheads and choose a profit or contingency buffer.
- 4Enter the weeks and hours you expect to work each year.
- 5Set the percentage of your time that you expect to bill to clients.
- 6Review the suggested hourly rate and annual revenue target.
Example Calculation
Desired annual personal income
$75,000
Employment benefits replacement
15%
Annual business overheads
$15,000
Profit and contingency buffer
10%
Working weeks per year
46
Working hours per week
40
Billable time percentage
70%
Recommended hourly rate
$86.47
With 1,288 expected billable hours and a £111,375 annual revenue target, the suggested rate is about £86.47 per hour.
Frequently asked questions
How do I calculate my freelance accountant hourly rate?
Estimate the annual revenue you need for income, benefits, overheads and a buffer, then divide it by the billable hours you expect to work in a year.
What billable utilisation rate should a freelance accountant use?
It depends on your client base and workload. A lower percentage allows more time for administration, business development, training and other non-client work.
Should freelance accountants charge more than an employee hourly equivalent?
A freelance rate commonly needs to cover costs and risks that an employer may otherwise cover, including unpaid leave, insurance, software, marketing and non-billable time.
Are taxes included in the suggested hourly rate?
The calculator does not add personal income tax, VAT or sales tax. Consider your applicable tax obligations when setting and presenting your client price.
Should I use an hourly rate or a fixed fee?
Hourly pricing can suit uncertain or open-ended work. A fixed fee may be more suitable when the scope, deliverables and expected effort are clearly defined.
How often should I review my freelance accounting rate?
Review it when your costs, availability, experience, specialism or demand changes, and before renewing longer client engagements.
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Assumptions and warnings
Assumptions
- The calculation assumes all annual business overheads are entered separately from personal income.
- Billable utilisation includes time that cannot be charged to clients, such as administration, proposals, marketing and professional development.
- The employment benefits allowance is a simple percentage estimate for items such as pension contributions, leave and insurance.
- The result is a planning estimate and does not include personal income tax, VAT, sales tax or client-specific pricing factors.
- Your actual rate may vary by experience, specialism, location, client value and market demand.
Warnings
- This calculator provides a business-planning estimate only and is not financial, tax or pricing advice.
- Check applicable tax, VAT or sales-tax obligations and professional requirements for your circumstances.