Freelance Hourly Rate Calculator
Calculate your ideal freelance hourly rate based on desired salary, expenses, taxes, and billable hours.
The net amount you want to take home after taxes and expenses
Software, equipment, insurance, co-working, etc.
Include income tax + self-employment tax (~15.3%)
Typically 25–35 hours (rest goes to admin, marketing)
Vacation + sick days + holidays
Buffer for growth, savings, irregular months
Your Minimum Hourly Rate
The lowest rate to charge and still meet your income goals
$107.38/hr
Daily Rate (8hr)
What to charge for a full day of work
$859.01
Weekly Rate
Total revenue for one week of billable hours
$3,221.29
Monthly Revenue
Average gross revenue per month
$12,885.15
Annual Revenue
Total gross income needed for the year
$154,621.85
Annual Taxes (est.)
Estimated tax you’ll owe on your revenue
$39,428.57
Billable Hours / Year
Total hours you can bill clients annually
1440 hrs
Profit Buffer
Extra revenue set aside for growth and savings
$23,193.28
💡 Annual Breakdown
Take-home salary: $80,000.00
Business expenses: $12,000.00
Taxes: $39,428.57
Profit margin: $23,193.28
Total revenue needed: $154,621.85
Recommended Tools
FreshBooks
Invoicing and accounting software built for freelancers. #1 rated for ease of use.
QuickBooks Self-Employed
Track income, expenses, and mileage. Maximize tax deductions automatically.
Xero
Beautiful accounting software for small businesses and freelancers.
Wave
100% free invoicing and accounting. Perfect for solo freelancers.
Bonsai
Contracts, proposals, invoices, and accounting — all-in-one freelance suite.
Gusto
Payroll and benefits for freelancers who hire contractors or employees.
We may earn a commission if you sign up through these links, at no extra cost to you.
Why You Need a Freelance Rate Calculator
Most freelancers undercharge because they base their rate on what they earned as an employee. But freelancers have additional costs: self-employment tax (15.3%), health insurance, equipment, software, and unpaid time for marketing and admin. Our calculator factors in all of these so you know the minimum rate to sustain your business.
The Freelance Rate Formula
Ideal Hourly Rate = (Desired Annual Income + Business Expenses + Taxes) ÷ Billable Hours Per Year. For example, if you want $80,000/year, have $15,000 in expenses, 25% effective tax rate, and bill 1,200 hours/year, your rate should be at least ($80,000 + $15,000) / 0.75 / 1,200 = $105.56/hr.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
What is a good hourly rate for a freelancer?
Should I charge hourly or per project?
Recommended Tools
FreshBooks
Invoicing and accounting software built for freelancers. #1 rated for ease of use.
QuickBooks Self-Employed
Track income, expenses, and mileage. Maximize tax deductions automatically.
Xero
Beautiful accounting software for small businesses and freelancers.
Wave
100% free invoicing and accounting. Perfect for solo freelancers.
Bonsai
Contracts, proposals, invoices, and accounting — all-in-one freelance suite.
Gusto
Payroll and benefits for freelancers who hire contractors or employees.
We may earn a commission if you sign up through these links, at no extra cost to you.
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