Freelance Rate Calculator
Find the hourly rate you actually need to charge to hit your income goal — after taxes, business expenses, and all the unpaid hours no one talks about.
✏️ These numbers were filled in from a shared link — change anything to make it your own.
How this calculator works
Most rate calculators just divide a salary by 2,080 hours. This one works backwards from the money you want to keep and adds back everything self-employment actually costs:
- Start with your take-home goal — what you want in your pocket after tax.
- Gross up for taxes so what's left after tax equals your goal:
take-home ÷ (1 − tax rate). - Add business expenses — the revenue must cover these before you're taxed on profit.
- Divide by real billable hours — billable weeks (52 − weeks off) × billable hours per week.
- Add a profit buffer for scope creep, late payers, and slow months.
This is an estimate to help you price with your eyes open — not tax or financial advice. Tax rules vary by country and situation; confirm your numbers with a professional.
How to use your number
Treat the result as your floor, not a ceiling. Quote fixed-fee projects as estimated hours × this rate plus a buffer, and raise it for rush work or specialized expertise. If the number feels high, that usually means your old salary-based rate was quietly losing you money.
Frequently asked questions
How do I calculate my freelance hourly rate?
Start from the take-home income you want. Add your yearly business expenses, then gross it up to cover taxes: Revenue = expenses + (take-home ÷ (1 − tax rate)). Divide that revenue by the number of hours you can actually bill in a year (billable weeks × billable hours per week). The result is your minimum hourly rate.
Why is my freelance rate higher than my old salary divided by 2,080?
A salary hides a lot. As a freelancer you pay both halves of self-employment tax (about 15.3% on net earnings), you cover your own benefits and business expenses, and only part of your working week is billable. Charging your old hourly wage leaves you earning far less than you did as an employee.
What tax rate should I use?
Use your combined effective rate: self-employment tax (~15.3% on net earnings, part of which is deductible) plus federal and any state income tax on your taxable profit. Many US freelancers land somewhere between 20% and 35% all-in. This tool uses your effective rate as an estimate — confirm with a tax professional.
How many billable hours should I assume per week?
Very few freelancers bill 40 hours a week. After sales, admin, invoicing, learning, and gaps between projects, most bill 20–30 hours even when "fully booked." Using an honest billable number is the single biggest reason this calculator returns a higher rate than naive ones.
Should I charge hourly or per project?
Use this hourly number as your internal floor, then quote projects as a flat fee (estimated hours × your rate, plus a buffer for scope risk). Clients often prefer fixed prices, and value-based pricing can earn more — but you should never quote a project that works out below this hourly floor.