Freelancer Rate Calculator
Calculate your ideal freelance hourly rate based on your desired income, expenses, and billable hours. Stop undercharging and ensure your freelance business is profitable. Factor in taxes, benefits, and business costs that employers typically cover.
Your Freelance Goals
Setting Your Freelance Rate
Most freelancers undercharge because they forget that self-employment comes with costs that employers typically cover. You need to account for health insurance, retirement savings, self-employment taxes, vacation time, sick days, and all your business expenses.
Why Freelancers Need Higher Rates
- Self-employment tax: Additional 15.3% in the US
- No benefits: Health insurance, 401k matching, PTO
- Non-billable time: Admin, marketing, invoicing, learning
- Business expenses: Software, equipment, office space
- Income variability: Need buffer for slow periods
Billable Hours Reality
Most freelancers can only bill 60-70% of their working hours. The rest goes to finding clients, administrative work, and professional development. A 40-hour week typically yields 25-30 billable hours. Account for this when setting your rates.