Business
Freelancer Rate Calculator
Calculate your minimum hourly and daily rate. Factor in your desired income, business expenses, taxes, and realistic billable hours to set a sustainable rate.
Enter your details and click Calculate
Minimum Hourly Rate
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How is this calculated?
Formula: Gross income needed divided by total billable hours.
Working Weeks = 52 − Weeks Off
Total Billable Hours = Billable Hours/Week × Working Weeks
Gross Needed = (Desired Income + Expenses) / (1 − Tax Rate/100)
Hourly Rate = Gross Needed / Total Billable Hours
Daily Rate = Hourly Rate × 8
Monthly Revenue = Gross Needed / 12Calculation history
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FAQ
Frequently asked questions
How do I set my freelance rate?
Start with your desired take-home income, add business expenses and taxes, then divide by your realistic billable hours. Most freelancers can only bill 60-70% of their working hours (the rest goes to admin, marketing, learning). This calculator does the math — your rate should cover income + expenses + taxes + non-billable time.
What expenses should I include?
Common freelance expenses: software/tools ($100-500/mo), coworking space ($200-500/mo), health insurance ($300-700/mo), retirement contributions, internet, phone, professional development, accounting services, equipment depreciation, and marketing costs. Add them all up annually for this calculator.
How do freelancers pay taxes?
Freelancers pay self-employment tax (15.3% in the US for Social Security + Medicare) plus income tax. Total effective tax rate is often 25-40% depending on income level and deductions. Set aside 25-30% of every payment for taxes. Pay quarterly estimated taxes to avoid penalties.
What are realistic billable hours?
Full-time employees work ~2,080 hours/year but freelancers typically bill 1,000-1,400 hours. Factors: time off (4-6 weeks), admin/invoicing (5-10 hrs/week), marketing/sales (5-10 hrs/week), professional development. A 30-hour billable week with 4 weeks off = 1,440 hours is optimistic but achievable.
Should I charge hourly or project-based?
Both have merits. Hourly is simpler and protects against scope creep. Project-based rewards efficiency and can earn more per hour as you get faster. Many freelancers start hourly, then switch to project-based once they know how long tasks take. Either way, calculate your minimum hourly rate as a floor.