Freelance Rate Calculator
Calculate the hourly rate you need to charge as a freelancer.
Results
Freelancers often undercharge because they compare their rate to a salaried hourly equivalent without accounting for self-employment tax, health insurance, unpaid time off and non-billable hours (marketing, admin, invoicing). This calculator works backwards from your desired take-home income to find the hourly rate that actually covers everything.
Explore all our income and tax calculator tools, or browse the full finance calculators.
Frequently asked questions
Freelancers pay both halves of FICA (15.3%), buy their own health insurance ($5,000-15,000/year), have no paid time off, and spend 20-40% of their time on non-billable work (marketing, admin, invoicing). A $40/hr salaried job often requires a $60-80/hr freelance rate.
Most freelancers bill 25-32 hours per week, not 40. The rest goes to finding clients, admin, invoicing, marketing, learning and breaks. Using 30 billable hours is a realistic starting point.
Freelancers typically face 25-35% effective tax rates, including self-employment tax (15.3%) plus federal and state income tax. Use 30% as a safe estimate, or consult a tax professional for your specific situation.
Project-based pricing is often better because it rewards efficiency. Calculate your hourly rate first, estimate hours for the project, then add a 20-30% buffer. This gives you a per-project price anchored in real costs.
Define the scope clearly in your contract. For additional work, quote a change order at your hourly rate. Having a clear minimum rate makes it easy to price additions fairly.