Freelance Rate Calculator
Calculate your ideal hourly or project rate based on income goals, expenses, and available hours
Calculator
Overview
The Freelance Rate Calculator determines your ideal hourly rate by working backward from your annual income goal, accounting for taxes, business expenses, and realistic billable hours.
Freelancers who price by gut feeling typically earn 30-50% less than their goal. This calculator ensures your rate covers self-employment tax (15.3%), expenses, health insurance, and time off.
Enter your desired annual income, estimated expenses, tax rate, and realistic billable hours per week. The calculator shows your required hourly rate and equivalent project rates.
How It Works
Formula
Hourly Rate = (Annual Income Goal + Taxes + Expenses) / (Billable Hours/Week x 50 Weeks)Variables
- Income Goal: Your desired annual take-home pay
- Tax Rate: Self-employment tax (15.3%) + income tax bracket
- Expenses: Annual business expenses (tools, software, insurance)
- Billable Hours: Hours you can actually bill clients per week (typically 60-70% of work hours)
Best Practices
- Assume 25-30 billable hours/week (not 40)
- Include 15.3% self-employment tax
- Factor in health insurance costs
- Account for 2-4 weeks unpaid vacation
Frequently Asked Questions
How many hours can I realistically bill?
Most freelancers bill 25-30 hours per week. The rest goes to admin, marketing, invoicing, and client communication. Assuming 40 billable hours leads to burnout or underearning.
Should I charge hourly or per project?
Per project is generally better - it rewards efficiency and clients prefer knowing the total cost upfront. Use your hourly rate to estimate project costs internally.
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