Freelance Hourly Rate Calculator
Work out the hourly rate to charge as a freelancer so you hit your target take-home income after taxes and business expenses, based on the hours you actually bill. Runs in your browser.
Charge at least
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Show the math
Gross up your target for tax, add expenses, then divide by the hours you bill:
rate = (target / (1 − tax) + expenses) / billable hours
Because freelancers pay their own tax and expenses and only bill a fraction of their working hours, the rate is well above an equivalent salaried wage. Lower your billable hours and the rate rises, the same income has to be packed into fewer paid hours.
What this does
A freelance hourly rate calculator works out the rate to charge so you hit a target take-home income after taxes and business expenses, based on the hours you actually bill.
How to use it
- Enter your target take-home income.
- Enter your annual business expenses and tax rate.
- Enter the hours you actually bill each week and weeks worked.
- Read the hourly rate you need to charge.
How it works
The tool grosses up your take-home target for taxes, adds business expenses to find the revenue you must bill, then divides by your annual billable hours (billable hours per week times weeks worked).
Understanding your result
Freelance rates exceed salaried wages because you pay self-employment tax, cover your own expenses and benefits, and only bill a fraction of your working hours. Be realistic, many freelancers bill 20–30 hours a week, not 40.
Example
To net $70,000 with $10,000 of expenses and a 25% tax set-aside while billing 25 hours a week, you would charge roughly $80 an hour.
Sources & methodology
- IRS, Self-Employed Individuals Tax Center, Self-employment tax obligations
Last updated .
Frequently asked questions
How is the freelance rate calculated?
The tool grosses up your target take-home for taxes, adds your business expenses to get the revenue you must bill, then divides by the hours you actually bill in a year (billable hours per week × weeks worked).
Why is my rate higher than a salaried wage?
Freelancers pay self-employment tax, cover their own expenses and benefits, and only bill a fraction of their working hours (the rest is admin and sales). All of that has to be packed into your billable hours.
What should I use for billable hours?
Be realistic, even full-time freelancers rarely bill 40 hours a week. Many bill 20–30. Lower billable hours mean a higher rate is needed to reach the same income.
Do you keep my numbers?
No. All math happens in your browser.
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