Free Freelance Hourly Rate Calculator
Stop undercharging. Calculate your true minimum hourly rate based on your income goals, expenses, and lifestyle.
Software, equipment, insurance, etc.
How to Calculate Your Freelance Hourly Rate
Setting the right hourly rate is crucial for freelance success. Many freelancers undercharge because they only consider their desired salary, forgetting about taxes, expenses, and non-billable time.
What to Include in Your Rate
- Business expenses: Software subscriptions, equipment, coworking space, insurance
- Self-employment taxes: You pay both employer and employee portions (15.3% in the US)
- Income taxes: Federal, state, and local taxes on your earnings
- Time off: Vacation, sick days, holidays — you don't get paid for these
- Non-billable hours: Admin, marketing, invoicing, client communication
The Freelance Rate Formula
(Desired Income + Expenses) ÷ (1 - Tax Rate) ÷ Billable Hours = Minimum Hourly Rate
Tips for Setting Your Rate
- Start with your minimum: This calculator gives you the floor. You should charge more.
- Research market rates: Check what others in your field and location charge.
- Consider value pricing: Sometimes project-based pricing yields higher earnings.
- Raise rates regularly: Increase your rate for new clients every 6-12 months.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Use the formula: (Desired Annual Income + Business Expenses) ÷ (1 - Tax Rate) ÷ Annual Billable Hours = Minimum Hourly Rate. Our free calculator automates this calculation for you.
How many billable hours should I expect per week?
Most freelancers and consultants can bill 20-30 hours per week. The remaining time goes to admin work, marketing, invoicing, and client communication. Never assume 40 billable hours.
Should I charge different rates for different clients?
Yes! The calculated rate is your minimum. Charge more for complex projects, tight deadlines, enterprise clients, or specialized skills. Consider value-based pricing for larger engagements.
How often should I raise my freelance rates?
Review and increase rates every 6-12 months to account for inflation, growing experience, and market demand. Apply new rates to new clients first, then gradually to existing ones.