Freelance Rate Calculator
Setting your freelance rate too low is one of the most common mistakes. This calculator works backward from your income goal — accounting for business expenses, taxes, and the reality that not every hour is billable — to find the hourly rate you actually need to charge.
Formula reviewed for accuracy. Our methodology & sources
Freelance Rate Calculator
business calculator
How It Works
A freelancer can't bill 40 hours a week — time goes to admin, marketing, and time off. We use your realistic billable hours and weeks worked, then gross up your take-home goal for taxes and add business expenses to find the rate that actually gets you there.
Formula
Required Revenue = Target ÷ (1 − Tax Rate) + Expenses Hourly Rate = Required Revenue ÷ (Billable Hours/Week × Weeks Worked)
Examples
$80K take-home, $8K expenses, 25% tax, 25 hrs/wk
Yields roughly a $100/hour rate.
Frequently Asked Questions
Why is my freelance rate higher than an employee salary?
As a freelancer you pay your own taxes, benefits, equipment, software, and downtime, and you bill far fewer than 40 hours a week. A rate that looks high still nets a comparable take-home once all those are covered.
How many hours can I realistically bill?
Most full-time freelancers bill 20-30 hours a week; the rest goes to finding clients, admin, and breaks. Use a realistic number — overestimating billable hours is why many freelancers underprice.
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