Freelance Rate Calculator
Calculate your hourly rate from desired income, expenses, and billable hours.
Breakdown
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This calculator works backward from your financial goals to determine the hourly rate you need to charge clients. Follow these steps:
- Enter your desired annual income. This is your target take-home pay after taxes and business expenses. Think of it as your equivalent salary if you were employed full-time.
- Add your annual business expenses. Include software subscriptions, equipment, coworking space, professional insurance, accounting fees, marketing costs, and any other overhead you pay to run your freelance business.
- Set your estimated tax rate. Freelancers typically pay 25-35% in combined income and self-employment taxes, depending on your total income and location. When in doubt, use 30%.
- Enter billable hours per week. This is only the hours you bill to clients, not total working hours. Most freelancers bill 20-30 hours per week, with the remaining time spent on admin, marketing, and business development.
- Set working weeks per year. Account for vacation, sick days, and holidays. Most freelancers work 46-50 weeks per year.
Results update instantly. The breakdown section shows your rate as hourly, daily, weekly, and monthly figures so you can quote clients in whatever format they prefer. Use Share to send a pre-filled link or Copy to grab the result.
About Freelance Rate Calculation
Setting the right freelance rate is one of the most important decisions for independent professionals. Charge too little and you will struggle to cover expenses and taxes. Charge too much and you may lose projects to competitors. This calculator accounts for three factors most freelancers underestimate: taxes, business expenses, and non-billable time.
The formula first adds your desired income and business expenses, then divides by one minus your tax rate to get the total revenue you need to earn. It then divides that revenue by your total billable hours for the year. The result is the minimum hourly rate that meets your financial goals. All calculations run entirely in your browser. No data is sent anywhere.
Frequently Asked Questions
How do I set my freelance rate for the first time?
Start with your desired annual income and work backward. Add business expenses and taxes, then divide by billable hours. Research what others in your field charge to make sure your rate is competitive. Your rate should cover your costs and leave room for savings and growth.
What is the difference between billable and total hours?
Billable hours are the hours you directly charge to clients for project work. Total hours include everything else: emails, invoicing, marketing, networking, learning, and admin. Most freelancers find that only 60-70% of their working time is billable, which is why this calculator focuses on billable hours specifically.
What expenses should I include?
Include all costs of running your freelance business: software and tools, computer and equipment, internet and phone, coworking space or home office costs, professional liability insurance, accounting and legal fees, marketing and advertising, professional development, and travel expenses related to work.
When should I raise my freelance rates?
Consider raising rates when you are consistently booked out, when your skills or experience have grown, when your expenses increase, or annually to keep up with inflation. Many freelancers raise rates for new clients first while honoring existing contracts, then gradually bring existing clients up to the new rate at renewal.