Freelance hourly rate calculator
Most freelancers undercharge because they price off what feels reasonable, not what their actual costs require. This calculator works backwards from your target income, taxes, and overhead to the rate you need to actually clear that number.
What you want to clear in a year, after taxes.
52 minus holidays and time off.
Most freelancers bill 50–70% of working hours. The rest is sales, admin, learning.
Software, hardware, coworking, accountant, insurance.
Self-employment tax + income tax. US: ~30% is a common rough estimate.
Hourly rate to charge
$104 / hr
Day rate (8h)
$835
Week rate
$2,506
This is a starting rate, not a ceiling. Charge more for rush work, complex domains, or long retainers. Charge less only when you choose to — never because the client asked.
How to use this tool
- 1Set your target take-home pay (after taxes).
- 2Adjust working weeks, hours per week, and billable percentage to match reality.
- 3Add monthly expenses (software, coworking, equipment) and your tax rate.
About this tool
A freelance rate has to cover four things you don't see on a payslip: non-billable hours (admin, sales, learning), business expenses (software, hardware, accountant), self-employment taxes, and your actual take-home goal. Bake all four in or you are working below cost.
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Frequently asked questions
What billable percentage should I use?
Most full-time freelancers bill 50–70% of their working hours. The rest goes to sales, admin, learning, and unpaid revisions. New freelancers often start at 30–40%, so plan accordingly.
Should I quote hourly or fixed-price?
Quote fixed-price externally; calculate hourly internally. Clients respond better to "the project is $X" than to an open-ended hourly rate. But you need a rate to estimate the fixed price honestly.
How does this differ from my W-2 salary expectations?
A freelance rate has to cover ~30% taxes, business expenses, and ~30–50% non-billable time. Take a $100k salary expectation, and the equivalent freelance rate is roughly 2–2.5× higher per hour than the salary divided by 2,080.
Should I raise rates with experience?
Yes. Every 6–12 months, on new clients first. Existing clients can stay on their current rate or be moved up gradually. Freelancers who don't raise rates lose ground to inflation each year.
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