Freelance Rate Calculator
Calculate the hourly rate you need to charge as a freelancer to meet your income goals. Accounts for taxes, unpaid time, expenses, and profit margin.
Part of our Business Calculators collection.
Freelance Rate Calculator
Free online calculator
52 minus vacation and holidays (e.g. 48 = 4 weeks off)
Only count hours you can actually bill. Admin, marketing, etc. are not billable.
Software, equipment, insurance, coworking space, etc.
Self-employment tax (~15%) + income tax. 28% is a common estimate.
Add 10–20% for growth, savings, and slow months
How to Use This Calculator
- 1
Enter the annual take-home income you want to earn.
- 2
Set your working weeks per year (52 minus planned vacation).
- 3
Enter realistic billable hours per week — be honest, most freelancers bill 20–30 hours of a 40-hour week.
- 4
Add annual business expenses and your estimated tax rate.
- 5
See the minimum hourly rate you need to charge.
How Your Rate is Calculated
Gross Income Needed = (Target Income + Expenses) / (1 − Tax Rate) Annual Billable Hours = Billable Hours/Week × Working Weeks/Year Base Rate = Gross Income Needed / Annual Billable Hours Final Rate = Base Rate × (1 + Profit Buffer %)
Example Calculation
Example: $80k take-home, 25 billable hrs/week
Inputs
Result
$95/hour
Gross needed: ($80k + $6k) / 0.72 = $119,444. Annual billable hours: 25 × 48 = 1,200. Base rate: $119,444 / 1,200 = $99.5. With 15% buffer: ~$95/hr (net after buffer gives you the take-home target).