Freelance Hourly Rate Calculator
Freelancers can't bill every hour they work, and they pay their own taxes and expenses. Enter your goal take-home income and real working pattern to see the minimum rate to charge.
How the freelance rate is calculated
Revenue needed = take-home goal ÷ (1 − tax rate) + business expenses, plus profit buffer
Billable hours = hours per week × billable share × (52 − weeks off)
Hourly rate = revenue needed ÷ billable hours
Example
To take home $60,000 with a 25% tax rate you need $80,000 before tax. Add $6,000 of expenses and a 10% buffer: $94,600. Working 40 hours a week with 65% billable time and 6 weeks off gives 1,196 billable hours. Your minimum rate is about $79 an hour.
Why freelancers charge more than employees
- No employer pays half of Social Security and Medicare — in the US self-employed people pay both halves.
- No paid vacation, sick days or holidays.
- You pay for your own equipment, software and health insurance.
- Much of your time goes to marketing, admin and finding the next client.
A common rule of thumb is that a freelancer needs to charge roughly 1.5 to 2 times the hourly wage of an equivalent employee.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your income goal (before tax), yearly business expenses and a buffer, then divide by the hours you can actually bill in a year.
How many billable hours does a freelancer have?
Many freelancers bill only 50–70% of their working hours. Over a year that is often 1,000–1,400 billable hours.
Should I charge hourly or per project?
Hourly is simple and safe when scope is unclear. Per-project or value pricing can earn more once you can estimate work accurately — use your hourly rate to set the project price.