Freelance Rate Calculator
Set your hourly rate to hit your income goals as a freelancer. Account for taxes, overhead, and billable time.
How to Use This Calculator
Enter your desired annual income after expenses. Set how many weeks of vacation you plan to take per year. Enter the hours you plan to work per week. Adjust the percentage of time that is billable (not admin, marketing, or downtime). Enter your estimated tax rate and overhead percentage (business expenses as a percentage of income). The calculator instantly shows the hourly rate you need to charge, your daily rate, total billable hours per year, and what your effective hourly rate is after taxes.
How Freelance Pricing Works
Unlike salaried employees, freelancers must account for taxes, overhead, and unpaid time when setting their rates. A simple salary conversion gives a misleading number because it doesn't account for these factors. The true formula is: desired income plus overhead plus taxes, divided by billable hours. Most freelancers find they need to charge 2-3x what they would earn as an employee to account for self-employment taxes, health insurance, equipment, software, marketing, and the reality that only 60-80% of their working time is billable.