Lifestyle Planning
Freelancer Rate Calculator
Stop undercharging. Calculate your minimum viable hourly rate based on your income goals, real billable hours, business expenses, and self-employment taxes.
Configure
Freelancer rate calculator
Quick presets
Annual revenue at different rates
Compared to full-time employment
FTE equivalent hourly
$38.46/hr
based on desired income ÷ 2,080 hrs
Freelance premium needed
198% more
vs equivalent employee hourly rate
Freelancers need to charge significantly more than their equivalent hourly employee rate to cover taxes, benefits, unpaid time, and business expenses.
Note: Tax rates are approximate. Actual liability depends on deductions, jurisdiction, and business structure. Consult a tax professional for personalized advice.
By the numbers
60–70%
Typical billability rate for freelancers — only 60–70% of working hours are billable
15.3%
US self-employment tax rate on top of income tax for full-time freelancers
~1,000
Realistic billable hours per year at 50% billability on a standard work schedule
How to set your freelance rate
01
Choose a preset or set income goal
Select a profession preset or enter your desired annual take-home income and business expenses.
02
Set your work schedule
Adjust total working weeks, hours per week, and billable percentage to reflect your realistic schedule.
03
Get your rates
See your minimum viable rate, recommended rate with a buffer, and how it compares to a full-time employee salary.
Frequently asked questions
How do I calculate my freelance hourly rate? ▼
Start with your desired annual income. Add business expenses and self-employment taxes. Divide by your actual billable hours (not total working hours). Freelancers should account for non-billable time like admin, marketing, and client prospecting.
What is a good freelance rate? ▼
Rates vary widely by skill, industry, and location. As a baseline, a freelancer targeting $80,000/year with 1,000 billable hours needs at least $80/hour. Adding taxes and expenses typically pushes the recommended rate to $95–$120/hour.
How many billable hours can a freelancer realistically work? ▼
Most freelancers bill 60–70% of their working time. A 40-hour workweek yields only 24–28 billable hours. Non-billable activities include business development, invoicing, admin, and ongoing skill development.
Should I charge different rates for different clients? ▼
Yes, and it is common practice. You may charge a premium for rush work, specialized expertise, or high-complexity projects. Many freelancers set a base rate and adjust upward for tight deadlines, high-value engagements, or particularly demanding scope.
What is the difference between minimum rate and recommended rate? ▼
The minimum rate is the exact amount needed to cover all costs and taxes with no buffer. The recommended rate adds a cushion — typically 20% — to account for slow months, late invoices, retirement savings, and unexpected expenses. Always aim for the recommended rate.
Related tools
Disclaimer: Tax estimates are approximations. Actual tax obligations vary by location, filing status, and deductions. Consult a tax professional for personalized advice.
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