How do I use the Freelance Rate Calculator?

Enter your desired annual take-home income after taxes. Add your estimated annual business expenses (software, equipment, office, insurance). Set your self-employment tax rate (approximately 30% in the US including income tax). Enter how many hours per week you can actually bill clients (typically 25-35). Set weeks off per year for vacation, sick days, and holidays. Add a profit margin percentage to build a buffer. Click Calculate.

Is the Freelance Rate Calculator free?

Yes, the Freelance Rate Calculator is completely free. It runs entirely in your browser with no signup, no download, and no data sent to any server.

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Freelance Rate Calculator

Calculate your ideal freelance hourly rate based on desired income, expenses, taxes, and billable hours.

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Freelance rate calculator

Calculate your ideal freelance hourly rate

Factor in your desired income, expenses, taxes, and billable hours to find the rate you need to charge.

Desired annual income ($) Annual business expenses ($) Software, equipment, office, etc. Self-employment tax rate (%) ~30% for US (income + SE tax) Billable hours per week Typically 25-35 of 40+ worked Weeks off per year Vacation, sick, holidays Profit margin (%)

How to use

How to Use the Freelance Rate Calculator

1 Enter your desired annual take-home income after taxes.
2 Add your estimated annual business expenses (software, equipment, office, insurance).
3 Set your self-employment tax rate (approximately 30% in the US including income tax).
4 Enter how many hours per week you can actually bill clients (typically 25-35).
5 Set weeks off per year for vacation, sick days, and holidays.
6 Add a profit margin percentage to build a buffer. Click Calculate.

The Freelance Rate Calculator works backward from your desired income to determine the hourly rate you need to charge. It accounts for taxes, business expenses, non-billable time, and profit margin. Many freelancers undercharge because they forget to factor in self-employment taxes (which can be 25-35% in the US) and the many hours spent on admin, marketing, and learning that cannot be billed.

Billable hours are typically 60-75% of total working hours. If you work 40 hours per week, you might only bill 25-30 hours. The rest goes to invoicing, client communication, project management, and business development. This calculator ensures your rate covers all these hidden costs so you can earn what you deserve.

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