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Freelance Rate Calculator

Calculate your ideal freelance hourly rate based on your target annual income, business expenses, taxes, and available billable hours. Compare hourly, daily, and project pricing.

Income & Expenses

Net take-home pay you want per year.
Income + self-employment taxes combined.
Software, equipment, insurance, etc.
Buffer for savings, growth, and emergencies.

Availability

52 minus vacation and sick days.
Time spent on paid client work.
Results update as you type.

How It Works

The formula accounts for taxes, expenses, non-billable time, and profit margin:

Hourly Rate = Required Annual Revenue / Billable Hours Per Year

Required Annual Revenue is calculated as:

Revenue = (Target Income + Expenses) / (1 − Tax Rate) / (1 − Profit Margin)

Billable Hours Per Year is calculated as:

Billable Hours = Working Weeks × Hours Per Week × Billable Percentage

What to Include in Expenses

  • Software & tools — design, dev, accounting
  • Insurance — health, liability, professional
  • Equipment — computer, monitors, peripherals
  • Office — coworking, internet, phone
  • Professional development — courses, conferences

Tips for Setting Rates

  • Non-billable time includes admin, marketing, and invoicing
  • Most freelancers bill 60–80% of their working hours
  • Increase rates 5–10% annually to match inflation
  • Project rates can command a 15–25% premium over hourly
  • Factor in payment delays (net-30, net-60 terms)

Embed This Util

You can embed this util on your own site as a widget. Adding ?embed=1 to the URL loads a compact version with just the tool itself; no header, menu, or documentation. Paste this snippet into your HTML: 


    

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