Freelance Rate Calculator

Setting your freelance rate is one of the most critical decisions you'll make as an independent professional. Charge too little and you'll burn out chasing revenue. Charge too much and you'll struggle to land clients. The sweet spot? A rate based on math, not guesswork.

Start with your financial goals

Begin with the annual take-home pay you want after taxes and expenses. This is different from gross revenue — it's the money that actually hits your personal bank account. Add your business expenses (software, hardware, coworking space, insurance, accountant fees) to get your total annual needs.

Account for taxes

As a freelancer, you're responsible for self-employment tax on top of income tax. In the US, this adds roughly 15.3% to your effective rate. Factor in your total tax burden — income tax, self-employment tax, and any state/local taxes — to calculate the gross revenue needed to meet your take-home goal.

Don't forget vacation and sick days

Full-time employees get paid vacation, sick leave, and holidays. As a freelancer, every day off is a day without income. Budget at least 2–4 weeks off per year for rest, illness, and personal time. Your rate needs to cover 52 weeks of expenses in fewer than 52 weeks of work.

Factor in non-billable work

Not every working hour is billable. You'll spend time on invoicing, client communication, proposals, marketing, bookkeeping, and professional development. Most freelancers find that only 60–70% of their working hours are actually billable. Our calculator helps you account for this with the "billable hours per week" slider.

The formula

Divide your annual gross revenue target by your total billable hours (billable weeks × billable hours per week). The result is your minimum hourly rate. Round up — always. You can negotiate down from a strong starting position, but it's nearly impossible to raise rates with existing clients.