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Freelance Hourly Rate Calculator

Calculate the minimum hourly rate you must charge to cover your desired salary, business expenses, and taxes — plus a recommended market-rate buffer.

Your target net income after taxes and expenses
Software subscriptions, equipment, insurance, office, professional development
Self-employment tax (~15%) + income tax bracket. US freelancers: typically 25-40%.
Realistic billable hours — not 40. Include admin, sales, and networking time.
Weeks you will not be earning (vacation, sick leave, holidays)

Results

Minimum Hourly Rate$87.46
Recommended Rate (+20% buffer)$104.96
Gross Revenue Needed$128,571
Annual Billable Hours1,470 hrs

📖What is it?

Unlike a salaried employee, a freelancer must cover their own taxes, benefits, business expenses, and the inherent risk of non-billable time. This calculator works backwards from your desired take-home income to a minimum hourly rate that makes freelancing financially viable, then adds a 20% buffer to account for market positioning, project delays, and unexpected costs.

🎯How to use

Enter your target annual take-home, estimated business expenses, your combined tax rate (self-employment + income tax), realistic weekly billable hours, and vacation weeks. The calculator converts net desire to required gross revenue and divides by your actual billable capacity to produce a floor rate. The recommended rate adds 20% headroom.

💡Example scenario

Target take-home: $80,000. Expenses: $10,000. Tax rate: 30%. Gross needed: ($80K + $10K) / 0.70 = $128,571. Billable hours: 30 hrs/week x (52 - 3 weeks) = 1,470 hours/year. Minimum rate: $128,571 / 1,470 = $87.46/hr. Recommended rate: $87.46 x 1.2 = $104.95/hr.

🏆Pro tip

Most new freelancers underestimate non-billable hours. If you are replacing a full-time job, assume only 50-60% of your hours will be billable in year one as you spend time on business development. Use the recommended rate (not the minimum) when quoting — clients rarely negotiate up, only down.