Freelance Rate Calculator

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$
The actual money you want to take home after everything.
$
Software, internet, insurance, coworking space, etc.
%
Account for self-employment, federal, and state taxes (typically 20-30%).
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Warning: 40 billable hours usually means a 60-hour work week.
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Factor in vacations, sick leave, and holidays without losing revenue.

Target Hourly Rate

$0.00
based on 0 billable hours/year
Rate Composition
Profit
Taxes
Expenses
Daily
$0
Weekly
$0
Monthly
$0
Gross Rev
$0

Annual Breakdown Summary

Desired Net Income $0.00
Estimated Taxes $0.00
Annual Expenses $0.00
Gross Required Revenue $0.00

How to Calculate Your Ideal Freelance Hourly Rate

Setting your freelance rate is one of the most important decisions you will make. It's not just about what sounds like a good hourly wage; it's about reverse-engineering your life goals to ensure your work supports your desired lifestyle and covers your business expenses.

Understanding the Variables

When you move from a traditional W-2 job to being a solopreneur, you must account for self-employment taxes, healthcare, software subscriptions, and hardware upgrades. Additionally, you are no longer paid for sick days, holidays, or vacations. Our calculator accounts for all these variables, ensuring your billable hours truly align with your income goals.

Billable vs. Non-Billable Hours

A common mistake freelancers make is assuming they can bill 40 hours a week. In reality, significant time is spent on administrative tasks, marketing, client acquisition, and accounting. We recommend budgeting for 20-25 billable hours a week if you want to maintain a standard 40-hour work week overall.

Frequently Asked Questions

Should I charge hourly or per project?

An hourly rate is a great baseline. However, once you become highly efficient, moving to value-based or project-based pricing can dramatically increase your earning potential without increasing your hours.

How much should I reserve for taxes?

While it varies by jurisdiction, most self-employed professionals reserve 25% to 30% of their gross income for local, state, and federal taxes.