Freelance Rate Calculator
Determines ideal hourly or project rate based on expenses, desired income, taxes, and billable hours
Your target take-home income per year
Total yearly business costs (software, equipment, insurance, etc.)
Estimated combined tax rate (federal, state, self-employment)
Realistic number of hours you can bill clients annually
The minimum hourly rate to meet your income goal
Equivalent rate for an 8-hour work day
Gross monthly revenue needed before taxes
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add your desired annual income to your annual business expenses, divide by (1 minus your tax rate), then divide by your annual billable hours. This accounts for taxes and non-billable time to ensure you actually earn your target income.
How many billable hours should I plan for?
Most freelancers bill 60-70% of their working hours. The rest goes to admin, marketing, invoicing, and professional development. For a 40-hour week, plan for about 25-30 billable hours, or roughly 1,200-1,500 per year.
Should I charge hourly or per project?
Hourly works well for ongoing or unpredictable work. Project-based pricing is better when scope is clear and rewards efficiency. Many freelancers start hourly and transition to project pricing as they gain experience estimating scope.
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