Built for freelancers and consultants
Know Your Real Rate, Capacity, and Runway
Most freelancers underprice because they do not account for non-billable time. Most underestimate their cash risk because they do not model slow months. These calculators fix both — free, in under a minute.
The six decisions every freelancer faces annually
Enter billable hours and total hours worked. Get your effective utilization rate, real effective hourly rate, and a benchmark against healthy consultant ranges.
Calculate your profit margin after subtracting direct costs — software, subcontractors, and platform fees — from what you invoice. Know your true take-home margin per project.
Enter monthly expenses and current cash savings. Get months of runway and a cash depletion date — critical before taking on a lower-rate retainer or transitioning clients.
Calculate how much it costs to acquire a new client and their lifetime value to your business. Tells you whether your business development spend is paying off.
Model how many leads, proposals, and win rates you need to hit a revenue target. Set realistic pipeline expectations before committing to a revenue goal.
Model the revenue threshold at which adding a subcontractor or employee makes economic sense — the break-even point before you take on payroll risk.
The hidden math behind your hourly rate
A $150/hour freelance rate sounds healthy. But if 35% of your working hours go to business development, proposals, admin, and unpaid scope — your effective hourly rate is $97.50. Against $97.50 you still pay taxes, software, equipment, and healthcare.
Effective rate = (Billable hours ÷ Total hours) × Invoice rateProject margin = (Revenue − Direct costs) ÷ RevenueMonthly runway = Cash balance ÷ Monthly expenses
The utilization rate calculator closes the gap between what you think you earn and what you actually take home per hour of real working time.
What these tools are — and are not
What they do
- Answer a specific rate, capacity, or cash question in under a minute
- Benchmark your utilization, margin, and runway against healthy ranges
- Give you plain-English output you can act on immediately
- Save scenarios so you can revisit assumptions at rate review time (Pro)
What they are not
- An invoicing tool — FreshBooks, Bonsai, and HoneyBook own that
- Accounting software — they model decisions, not record transactions
- Tax prep tools — consult your accountant for quarterly estimates
- Time tracking — Toggl, Harvest, and Clockify own the time-entry layer
Frequently asked questions
How do I price a project when I am switching from hourly to project-based?
Estimate total hours including non-billable overhead, then multiply by your target effective hourly rate (not your invoice rate). The utilization calculator helps you find that effective rate based on your current billing patterns before you commit to a fixed-price proposal.
Should I model a retainer or project-based relationship?
Use the pipeline velocity calculator to model both. Retainers provide predictable revenue and higher effective utilization. Project work offers higher per-project rates but lower utilization due to gaps between engagements. The tool shows the break-even trade-off based on your target annual revenue.
When does hiring a subcontractor make sense?
When you are consistently above 75% utilization and turning away work. The hire analyzer models the revenue threshold at which adding capacity (subcontractor or employee) becomes profitable after their cost, management overhead, and your own rate reduction for coordination time.
Find out your real effective hourly rate — no account required.
Check Your Utilization →See all calculators