Freelance Hourly Rate Calculator
Enter your income goal and expenses below. We'll calculate the minimum hourly rate you need to charge to actually hit that number — after taxes and time off.
1 Your Income Goal
This is after-tax money you want to keep each year
2 Work Schedule
Hours clients pay for (not admin)
Vacation + sick days + holidays
How full is your schedule?
3 Annual Business Expenses
Adobe, Figma, Slack, etc.
Annual premium cost
Dedicated workspace costs
Portfolio, ads, branding
4 Profit Margin
Profit margin above your costs — add this as a cushion and growth buffer.
Minimum Hourly Rate
/ hour to break even
Manage Your Freelance Business
How to Calculate Your Freelance Hourly Rate
Most freelancers set their rates by guessing, copying competitors, or thinking "what feels reasonable." That's why so many undercharge and burn out — they're not covering their actual costs.
The right approach is to work backwards from your income goal. Here's the exact formula we use:
The Formula
Frequently Asked Questions
A billable hour is time you charge a client for. Not all your working hours are billable — admin tasks, finding new clients, invoicing, and professional development are real work that clients don't pay for directly. Most freelancers are only 60–80% billable, which is why the occupancy rate matters.
The self-employment (SE) tax rate is 15.3% on your first $168,600 of net earnings (2026 estimate). This covers Social Security (12.4%) and Medicare (2.9%). The good news: you can deduct half of this SE tax from your gross income when calculating federal income tax.
A common target is 1,200–1,500 billable hours per year. That's roughly 25–30 billable hours/week × 48 working weeks. Charging for 40 hours/week 52 weeks/year is unrealistic — even employees aren't 100% productive, and you have admin, sales, and downtime.
We recommend a 15–25% profit margin minimum. This covers unexpected costs, slow periods, and allows you to reinvest in your skills and tools. Without a margin, one bad month wipes out your income goal.
Yes. The "premium rate" from this calculator (which adds a larger profit margin) is a good starting point for rush work, high-maintenance clients, or projects outside your specialty. Many experienced freelancers charge 25–50% more for rush timelines.