Freelance Rate Calculator
The hourly rate you need to hit your income goal — after tax, expenses, and real billable hours
Required Hourly Rate
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This freelance rate calculator tells you the hourly rate to charge to actually hit your income goal. It grosses up your desired take-home for taxes, adds business expenses, and divides by your realistic billable hours — so your rate covers everything a salaried job used to, not just your take-home pay.
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Frequently Asked Questions
How do I calculate my freelance hourly rate?
Work backwards from what you want to keep. Take your desired take-home income, gross it up for taxes, add your business expenses to get total revenue needed, then divide by your realistic billable hours for the year. Your rate has to cover far more than a salaried wage does.
Why is my freelance rate higher than my old salary?
Because as a freelancer you pay both halves of Social Security and Medicare (self-employment tax), cover your own health insurance, equipment, software, and time off, and you cannot bill 40 hours every week — admin, sales, and gaps eat into billable time. A rate that matches your old salary would leave you earning far less.
How many hours can I actually bill?
Most full-time freelancers bill 20–30 hours a week, not 40 — the rest goes to finding clients, invoicing, email, and unpaid admin. This calculator lets you enter realistic billable hours and weeks (accounting for vacation and slow periods) so your rate is not based on a fantasy 2,080-hour year.
How much should I set aside for taxes?
A common rule for U.S. freelancers is 25–35% of profit, depending on your bracket and state. This calculator defaults to 30%. Setting the money aside as you earn — ideally paid quarterly — avoids a painful surprise at tax time.
Should I charge hourly or per project?
Many experienced freelancers move to project or value-based pricing, which rewards efficiency and expertise rather than hours. But knowing your true hourly floor — what this calculator gives you — is essential for pricing any project so you never accidentally work below cost.