Freelancer Rate Calculator
Estimate the hourly and day rate your freelance business may need to support your desired take-home income, taxes, business expenses and non-billable time.
Rate targets
Results are estimates for informational purposes only. Verify important financial, tax, real-estate or retirement decisions with a qualified professional.
How the freelancer rate calculator works
The calculator starts with your desired take-home income and business expenses. It grosses that requirement up for your tax reserve, adds a business cushion, then spreads the required revenue across the hours you realistically expect to bill during your working weeks.
A freelancer rarely bills every working hour of the year. Vacation, holidays, sales, administration and gaps between projects all reduce billable capacity, which is why a sustainable freelance rate is usually higher than an employee hourly equivalent.
How to use the result
Treat the result as an economic floor, not necessarily your final price. Value-based or project pricing can be higher when your work creates meaningful business value.
Frequently asked questions
What should I use for desired income?
Use the amount you want available to yourself before personal spending. This calculator treats it as after the entered tax reserve, so choose a realistic tax percentage.
Why are billable hours lower than hours worked?
Freelancers spend time on sales, administration, proposals, bookkeeping and learning. Those hours still need to be supported by billable work.
What belongs in business expenses?
Examples include software, insurance, equipment, accounting, marketing, coworking, contractors and professional fees.
Should I add a profit buffer?
A buffer can fund slow periods, reinvestment, paid time off and unexpected costs. It is separate from your desired personal income.
Is this the same as a market rate?
No. This estimates the rate your economics require. Your market may support more or less depending on expertise, demand and value delivered.