Freelancer Hourly Rate Calculator
Stop guessing what to charge. Enter your income goals and expenses and get your minimum rate, recommended rate, and what it looks like annually.
Whether you're just going freelance or you've been at it for years, most freelancers either undercharge and burn out or overcharge and lose clients. The right rate starts with math, not gut feeling. This calculator factors in your income goal, hours, time off, expenses, and tax burden to give you two numbers: the floor you can't go below, and the rate you should actually charge.
Your Details
Self-employed? Use 25-30% as a starting point.
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Enter your details and click Calculate
Your personalized rate will appear here
How to Use It
Step 1 — Enter your income goal
This is your take-home target, not revenue. What do you actually want to land in your bank account after taxes and expenses?
Step 2 — Set your real working hours
Be honest here. If you work 40 hours a week but only 25 are billable, use 25. Meetings, admin, and proposals don't pay.
Step 3 — Account for time off
Most freelancers forget this. Two weeks off is the minimum. Factor in holidays, sick days, and the vacations you actually want to take.
Step 4 — Add your expenses and tax rate
Software subscriptions, equipment, internet, health insurance, accountant fees — it adds up. And self-employment tax hits harder than most people expect.
Step 5 — Read your two numbers
Your minimum rate is survival. Your recommended rate is growth. Charge at or above the recommended rate.
How the Math Works
We calculate your billable hours per year first: Billable Hours = Hours Per Week x (52 − Weeks Off).
Then we calculate your total cost to operate: Total Annual Cost = Desired Income + (Monthly Expenses x 12).
Then we gross it up for taxes: Pre-Tax Need = Total Annual Cost / (1 − Tax Rate).
Your minimum rate: Minimum Rate = Pre-Tax Need / Billable Hours.
Your recommended rate adds your profit margin: Recommended Rate = Minimum Rate / (1 − Profit Margin).
No smoke and mirrors. That's the formula.
Who This Is For
Freelancers going full-time who need to replace a salary
Side hustlers figuring out if freelancing can pay the bills
Established freelancers who haven't raised rates in years and want to check the math
Consultants and contractors setting project-based rates (divide your hourly into your estimated project hours)
Tips for Setting Your Freelance Rate
Don't anchor to your old salary
Your employer covered payroll taxes, benefits, equipment, and overhead. As a freelancer, that's all on you. Your rate needs to be higher than your old hourly equivalent just to break even.
Charge for expertise, not time
Your rate reflects what you know, not just how long something takes. A faster, more experienced freelancer should charge more, not less.
Build in a raise every year
Inflation is real. Your expenses go up. If you set your rate and never revisit it, you're taking a pay cut every year. Recalculate annually.
Not every hour is billable
Sales calls, proposals, invoicing, learning new tools — none of that is billable. Most freelancers overestimate how many billable hours they actually log.
Test your rate with the market
If you pitch your rate and nobody pushes back, you're probably too cheap. A little resistance is healthy. Losing every deal on price means you're too expensive.
Factor in slow months
Freelance income isn't linear. Budget for two or three slow months per year and build that cushion into your rate.