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Freelance Rate Calculator

Calculate your ideal freelance hourly rate to meet your income goals after taxes and expenses.

Freelance Rate Calculator

Calculate your ideal freelance hourly rate based on income goals

Formula

Hourly Rate = (Income + Expenses) ÷ (1 - Tax Rate) ÷ Billable Hours

How to Use This Calculator

  1. 1

    Set income goal

    Enter your desired annual take-home income.

  2. 2

    Estimate billable hours

    Input how many hours per week you can bill clients.

  3. 3

    Add working weeks

    Account for vacation and non-billable time.

  4. 4

    Include expenses

    Add your annual business expenses.

  5. 5

    View your rate

    See your recommended hourly, daily, and monthly rates.

Frequently Asked Questions

How many hours should I bill?

Most freelancers can bill 20-30 hours per week. The rest goes to admin, marketing, and business development.

Should I charge hourly or project-based?

Project-based pricing often earns more as you get faster. Start hourly to understand your time, then transition to project rates.

How do I handle taxes?

As a freelancer, you're responsible for self-employment tax (15.3%) plus income tax. Set aside 25-35% of income for taxes.