Freelance Hourly Rate Calculator
Most new freelancers pick an hourly rate by looking at what a salaried job pays per hour. That undercounts almost everything: you pay your own taxes and benefits, you have business expenses, you take unpaid time off, and a large share of your week is not billable. This calculator starts from the income you want and works backwards to the rate you actually need.
Enter your numbers to see the result.
How this calculator works
- Enter the yearly take-home income you want after taxes and expenses.
- Set a realistic tax rate. Self-employed people in the US pay both income tax and self-employment tax, so many set aside a quarter to a third of income, but your own figure depends on your state and situation.
- Add yearly business costs such as software, equipment, insurance, health coverage and marketing.
- Enter the weeks you actually work and the share of your hours you can bill. Billable share of 50 to 70 percent is common because admin, sales and learning take time.
- Read the hourly rate, then compare it with your market and adjust.
The formula
Gross revenue needed = take-home income / (1 - tax rate) + business expenses. Billable hours = weeks x hours per week x billable share. Hourly rate = gross revenue / billable hours.
Example: $75,000 take-home, 25% tax, $6,000 expenses, 48 weeks, 40 hours, 65% billable. Gross needed = 75,000 / 0.75 + 6,000 = $106,000. Billable hours = 48 x 40 x 0.65 = 1,248. Rate = $106,000 / 1,248 = about $84.94 per hour.
Frequently asked questions
How do I figure out my freelance hourly rate?
Start from the income you want, add taxes and business costs to get the revenue you need, then divide by the hours you can realistically bill, not the hours you work.
What is a good billable percentage?
Many freelancers bill between half and two thirds of their working hours. New freelancers are often lower while they build a client base.
Should I charge hourly or per project?
Hourly is simple when scope is unclear. Per-project pricing rewards efficiency and is easier for clients to approve. Use this rate as the floor when you estimate a fixed price.
Is the tax rate here accurate?
No. It is a planning placeholder you set yourself. US self-employed people owe income tax plus self-employment tax, and state rules differ, so ask an accountant for your real rate.
Estimates for planning only, not financial, tax or legal advice. Nothing you enter leaves your browser.