Freelance Rate Calculator
Find the hourly rate you need to charge based on your income goals, billable hours, expenses, and taxes.
52 minus vacation, holidays, and sick time
Time you actually bill clients vs. admin, marketing, unpaid work. Most freelancers land between 60-80%.
Software, equipment, insurance, and other business costs
Rough estimate only — consult a tax professional for your exact rate
How to Calculate Your Freelance Rate
Unlike a salaried employee, your freelance rate needs to cover taxes, business expenses, and unpaid time spent on admin and marketing. The formula accounts for all of this:
Hourly Rate = (Desired Income + Expenses) ÷ (1 − Tax Buffer) ÷ Billable HoursBillable hours are lower than your total working hours because time spent on invoicing, proposals, and marketing isn't billed to clients.
Example Calculation
If you want to earn $60,000 a year, work 48 weeks at 40 hours a week, bill 70% of that time, have $2,000 in expenses, and set aside 25% for taxes:
Billable Hours = 48 × 40 × 0.70 = 1,344 hours
Rate = ($60,000 + $2,000) ÷ 0.75 ÷ 1,344 ≈ $61.50/hrFrequently Asked Questions
How do I calculate my freelance hourly rate?
Add your desired income and business expenses, divide by your tax buffer, then divide by your billable hours per year — not your total working hours.
What is a billable percentage?
It's the portion of your working time you actually bill to clients. Most freelancers spend 20-40% of their time on admin, marketing, and unpaid work, leaving 60-80% billable.
Why is my freelance rate higher than a similar employee salary?
Freelancers cover their own taxes, benefits, equipment, and unpaid downtime, none of which an employer provides. These costs are built into the hourly rate.