Freelance Rate Calculator
Set your hourly rate to hit your income goals as a freelancer. Account for taxes, overhead, and billable time.
Quick Answer
This freelance rate calculator helps you set rates that cover your expenses and income goals. Works backward from target income through business expenses, taxes, and billable hours.
How to Use This Calculator
Enter your desired annual income, vacation weeks per year, and planned work hours per week. Adjust billable time percentage (not admin or downtime), tax rate, and overhead. This freelance rate calculator shows the hourly rate you need to charge, daily rate, billable hours per year, and effective after-tax rate for accurate freelance pricing.
How to Set Freelance Rates and Pricing
Unlike salaried employees, freelancers must account for taxes, overhead, and unpaid time when setting hourly rates. A simple salary conversion is misleading. The true freelance pricing formula: desired income + overhead + taxes ÷ billable hours. Most freelancers need to charge 2-3x an employee rate to cover self-employment taxes, health insurance, equipment, and the reality that only 60-80% of working time is billable. Use our hourly rate calculator for freelancers to find your optimal rate.
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