How to calculate your hourly rate as a video editor

Copying someone else's $50/hour rate is the #1 pricing mistake new editors make. Your rate has to come from your numbers. Here's the formula.

The formula

(Target annual income + Annual expenses) ÷ Billable hours per year = Minimum hourly rate

Worked example

• Target income: $60,000/year
• Annual expenses: $5,000 (Premiere Pro, hardware, internet, taxes)
• Billable hours: 25/week × 48 weeks = 1,200 hours
• Minimum rate: ($60,000 + $5,000) ÷ 1,200 = $54/hour

That $54 is your floor. Your actual quoted rate should be 20–30% higher to account for non-billable time (pitching, admin, learning) and profit margin.

Why "billable hours" matters more than you think

Most freelancers work 40+ hours but only bill 20–30. The rest goes to finding clients, answering emails, updating portfolios, and admin. If you divide by 40 instead of 25, you'll underprice by 37% — that's the difference between thriving and burning out.

Common expenses editors forget

• Software subscriptions (Premiere, After Effects, music licensing, stock footage)
• Hardware depreciation (a $3,000 laptop over 3 years = $1,000/year)
• Self-employment tax (15.3% in the US — on top of income tax)
• Health insurance (if you're in the US and buying your own)
• Home office costs (portion of rent, electricity, internet)

Calculate yours now

Use the free hourly rate calculator →

Enter your numbers once. Takes 60 seconds, no signup.