Career & Money
Freelance Rate Calculator
Start from the annual income you want and work backwards to the hourly rate that actually gets you there — taxes, expenses, and unbilled hours included.
How it works
Behind the numbers
Most freelancers undercharge because they divide their target salary by 2,080 hours. But you will never bill 2,080 hours — between admin, marketing, and vacation, 1,000 to 1,400 billable hours a year is realistic for a solo freelancer. Your rate has to cover the hours you don't bill.
The calculator adds your business expenses and self-employment tax (15.3% in the US, on top of income tax) to your target take-home pay, then divides by realistic billable hours. The result is often two to three times the naive 'salary ÷ 2080' number. That isn't greed — it's math.
Use the day-rate and project estimator to quote fixed-price work from the same rate, and revisit your numbers quarterly as expenses change.
FAQ
Questions, answered
What should I charge per hour as a freelancer?
Add your target income, business expenses, and taxes, then divide by realistic billable hours per year. The calculator above does exactly this — most people are surprised how high the honest number is.
How many billable hours are realistic per year?
For a solo freelancer, 1,000–1,400 billable hours per year is typical once you subtract marketing, admin, and time off. New freelancers should use the lower end.
Should I charge hourly or per project?
Quote projects from your hourly floor: estimate hours, multiply by your rate, add a buffer. Fixed pricing stays profitable only if you know the hourly number underneath.
How does self-employment tax affect my rate?
In the US, self-employment tax is 15.3% on net earnings, on top of income tax. The calculator includes it — ignoring it is the most common reason freelancers feel broke at tax time.
How often should I raise my rates?
Review yearly, or sooner if you are booked out more than 80% of the time. Existing clients usually accept a 5–10% annual increase without drama.