If you operate at 50% utilization as a freelancer, meaning only half your time is billable, your hourly rate needs to be significantly higher to maintain your income. Use this calculator to estimate what you should charge.
Freelancers must account for taxes, downtime, and business expenses. A common rule is to increase your target salary by 30–50% to arrive at a sustainable freelance rate.
With 50% utilization, only half your working time is billable. To maintain your income, your hourly rate must increase to compensate for unpaid time, client gaps, and downtime.
This is useful for comparing freelance rates, job offers, or understanding your effective hourly earnings.