Freelance Hourly Rate Calculator
Enter the income you want, your business costs, and how many hours you can actually bill — get the hourly rate that makes the math work.
Runs entirely in your browser — your numbers never leave this page.
How it works
Most freelancers undercharge because they divide their old salary by 2,080 hours. That ignores expenses, unbilled hours, and taxes. The honest formula:
Hourly rate = (Target income + Expenses) × (1 + Margin) ÷ Billable hours
- Billable hours are the killer — if you work 40 hours but only bill 25, your rate must be ~60% higher than the naive math.
- Expenses include software, insurance, equipment, home office, accounting, and health insurance you now buy yourself.
- Self-employment tax is ~15.3% on top of income tax in the US — employees split this with their employer; you pay all of it.
- Margin (10–20%) covers dry spells, late payers, retirement savings, and the vacation days nobody pays you for.
- Round up, not down — $87/hr should be quoted as $90. Clients negotiate down; never start below your floor.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your target income and business expenses, add a 10–20% margin, and divide by your annual billable hours. Example: ($80k + $12k) × 1.15 ÷ 1,200 hours = $88.17, so quote $89/hr.
How many billable hours should I assume?
Most freelancers bill 20–30 hours a week out of 40 worked — the rest goes to admin, marketing, and proposals. Be honest here; it is the biggest lever on your rate.
Should I charge hourly or per project?
Hourly protects you against scope creep; project pricing earns more once you are fast. Many freelancers quote project prices derived from their hourly floor — never below it.
What about self-employment tax?
In the US you pay ~15.3% self-employment tax on top of income tax. Your rate must cover it — that is part of what the profit margin is for.
Is it okay to have different rates for different clients?
Yes — rate floors are personal, quotes are strategic. Charge more for rush work, difficult clients, or high-value expertise; never go below your floor.
How often should I raise my rates?
Review yearly at minimum. Raise when you are consistently booked, when your skills jump, or when inflation eats the margin. Existing clients usually accept small annual increases.
What is a day rate and when do I use it?
Your hourly rate × 8, often rounded. Day rates suit on-site or full-day commitments where hour-tracking is impractical.
Why is my calculated rate so much higher than my old salary?
Because your salary hid the employer half of payroll taxes, benefits, paid leave, and utilization risk. The higher rate is not greed — it is the same economics, made visible.
Should beginners charge less?
Slightly, while building a portfolio — but not below your floor. Undercharging trains clients to expect it and makes raising rates later painful.
Do I charge for revisions and meetings?
Billable time is any time spent on the client's work, including meetings and reasonable revisions. Define revision rounds in your contract so "just one more tweak" has a price.