Freelance Hourly Rate Calculator
Figure out what to charge based on the income you actually want to take home — not a guess pulled from a forum thread.
This is a starting point, not gospel. Market rate, experience, and demand for your skill can push your real rate higher — this calculator only tells you the floor you need to hit your income goal. Numbers are in whatever currency you type them in; the calculator doesn't convert anything.
How this is calculated
1. Your take-home income is "grossed up" by your estimated tax rate, since taxes come out of revenue before you see it.
2. Annual business expenses are added on top — those also have to come out of client revenue.
3. Your total working hours per year are calculated from weeks off, days per week, and hours per day.
4. Only your billable percentage of those hours counts — time spent on invoicing, marketing, admin, and finding clients doesn't generate revenue directly, so the remaining billable hours have to cover the full number.
5. Revenue needed ÷ billable hours = your minimum hourly rate.
A few honest caveats
Most freelancers overestimate their billable percentage when they start out. 70% billable is already ambitious for someone doing their own sales, admin, and marketing — many solo freelancers land closer to 50-60%. If you're not sure, it's safer to guess low.
This tool estimates a floor based on your costs and goals. It doesn't know what the market will actually pay for your skill set — check what comparable freelancers charge before locking in a number.
Next: what you'll owe on it
The tax rate you entered above is a rough input here. To turn it into actual numbers — self-employment tax, income tax, and what to send the IRS each quarter — use the quarterly estimated tax calculator.
Read more
For the reasoning behind each input — why your billable percentage matters more than your hourly number, when to raise your rate, and when to price by project instead — see the guide on how to set your freelance rate.
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