Hourly Rate ↔ Project Cost Converter

Quickly convert between hourly rates and project quotes. Ideal for freelancers and contractors to calculate project totals from an hourly rate or reverse-calculate effective hourly rates from a project budget.

How to Use

1. Select Mode
Choose 'Hourly Rate → Project Cost' to calculate a project quote from your hourly rate, or 'Project Cost → Hourly Rate' to find your effective hourly rate from a project budget.

2. Hourly Rate → Project Cost
Enter your hourly rate and estimated hours to get the base project cost. Add a markup (%) to arrive at the final price to propose to your client.

3. Project Cost → Hourly Rate
Enter the total project budget and estimated hours to calculate the effective hourly rate. Use this to evaluate the profitability of a project.

4. Rate Table & Comparison
The calculated hourly rate is automatically converted to daily, weekly, and monthly rates, and compared against the 2026 Korean minimum wage (10,030 KRW).

How is the project cost calculated from an hourly rate?

Project cost = Hourly Rate × Estimated Hours. For example, 25,000 KRW/hr × 80 hours = 2,000,000 KRW. You can add a markup percentage to cover overhead and arrive at your final client quote.

Does the 3.3% withholding tax apply to freelancers?

Freelancers and independent contractors in Korea who receive business income are generally subject to 3.3% withholding tax (3% income tax + 0.3% local income tax). The calculator shows your net take-home amount after this deduction.

Why should I add a markup?

Beyond pure working hours, there are indirect costs such as communication, revisions, meetings, and administration. It is generally recommended to add a 10–30% markup to cover these real costs.

What is the 2026 minimum wage in Korea?

The 2026 minimum wage in Korea is 10,030 KRW per hour. While freelancers are not subject to the Minimum Wage Act, this figure serves as a useful reference point when evaluating your hourly rate.

Complete Guide to Freelancer Hourly Rates and Project Pricing

How to Set Your Freelance Hourly Rate

Setting the right hourly rate as a freelancer requires considering many factors beyond a simple desired monthly income divided by working hours. You must account for taxes (3.3% withholding), lack of employer-paid social insurance, slow periods and gaps, equipment and software costs, and education. A common guideline is to target 1.5–2× the equivalent full-time employee salary as your freelance income goal.

Project Pricing Strategy

Beyond hourly rates, experienced freelancers often use value-based pricing — setting prices based on the business value delivered to the client rather than time spent. When quoting a project, carefully estimate the time for each phase (initial meetings, planning, development/production, revisions, delivery) and include a 10–20% buffer for unexpected work.

Hourly Rate to Annual Salary

The basic formula to convert an hourly rate to an annual salary is: Hourly Rate × 8 hours × working days. At 160 hours per month (8h × 20 days), a 25,000 KRW hourly rate equals 4,000,000 KRW/month or 48,000,000 KRW/year. Keep in mind that freelancers typically have billable hours at 60–70% of total working time, so setting your rate higher accordingly is important.

This calculator is for reference only. Actual contract amounts, taxes, and business costs may vary depending on individual circumstances. Consult a tax professional for accurate tax calculations.

All calculators and tools on this site are based on the laws, tax rates, and policies of the Republic of Korea.

This calculator is provided for informational purposes only.

Results are estimates and may differ from actual amounts.

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