Freelance Hourly Rate Calculator
Many freelancers underprice their work because they forget about taxes, business expenses, and the hours spent on admin, marketing, and unpaid downtime. Enter your target take-home income, expected business expenses, and how many hours per week you can actually bill clients to find your true minimum hourly rate.
About this calculator
Work backward from your desired annual income to find the hourly rate you need to charge, accounting for taxes, expenses, and unbillable time.
Frequently Asked Questions
Why is my required hourly rate higher than I expected?
Freelancers must cover taxes, business expenses, and unpaid hours (admin, marketing, sick days) out of their billable hours, which pushes the effective rate up significantly compared to a salaried equivalent.
How many hours per week should I count as billable?
Most freelancers can realistically bill 20-30 hours per week even when working full-time, since the rest goes to client acquisition, invoicing, and other unpaid tasks.
Does this include self-employment tax?
Yes, roll self-employment tax, income tax, and any state tax into the single 'estimated tax rate' field for an approximate rate — consult a tax professional for precise planning.