Freelance Rate Calculator
Work out the hourly rate you need to charge as a freelancer to hit your income goal, after accounting for unbillable time and expenses.
Hourly rate to charge
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Daily rate (8 hrs) —
Total revenue needed —
A planning estimate — actual tax obligations depend on your business structure and location; consult an accountant.
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How it works
Rate = (target income + annual expenses + self-employment tax buffer) ÷ billable hours per yearFrequently Asked Questions
How do I calculate my freelance hourly rate?
Start with your target take-home income, add business expenses and a buffer for self-employment taxes, then divide by realistic billable hours (not total working hours — admin, marketing and finding clients eat into the week). Wanting $80,000/year at 1,000 realistic billable hours needs roughly $95–100/hour once expenses and taxes are covered.
How many billable hours should I plan for per year?
Full-time freelancers often bill only 50–70% of their working hours once you subtract admin, proposals, and slow periods — 1,000–1,300 billable hours/year is a common realistic range out of ~2,000 total working hours.
Should freelance rates be higher than an employee's equivalent salary rate?
Yes, substantially — freelancers cover their own taxes (including the employer's share), benefits, equipment, unpaid time off, and unbillable admin time that an employer would otherwise absorb.