Freelance Rate Calculator
Freelance rates have to cover self-employment taxes, business costs and the hours you can't bill. Start from the income you want.
Your details
Self-employment tax plus income tax. Many US freelancers set aside 25–35%.
Leave weeks for holidays and sick time.
Share of planned billable hours you actually invoice.
Results update as you type.
$114.48/hr
Minimum hourly rate to hit your target
- Revenue needed per year
- $126,388.89
- Monthly revenue target
- $10,532.41
- Realistic billable hours per year
- 1,104 hrs
- Suggested day rate (8 hrs)
- $915.86
- Suggested weekly rate
- $2,747.58
- Rate rounded for quoting
- $115
How this calculator works
- 1Your income target and expenses are grossed up for tax, giving the revenue you need to invoice.
- 2Billable hours are reduced by your utilisation rate to reflect admin, sales and downtime.
- 3Revenue needed divided by realistic billable hours gives the minimum rate.
Formula
Rate = ((Target income + Expenses) ÷ (1 − Tax rate)) ÷ (Billable hours × Weeks × Utilisation)
Worked example
- Target $85,000 take-home, $6,000 expenses, 28% tax.
- Revenue needed: $126,389. Realistic billable hours: 30 × 46 × 80% = 1,104.
- Minimum rate: about $114 per hour, or roughly $915 per day.
What we assume
- Self-employment tax, income tax and any state tax are combined into one rate.
- Health insurance and retirement contributions should be in expenses or the income target.
- This is a floor, not a market price — value-based pricing may support more.
Frequently asked questions
Why is my freelance rate so much higher than an employee hourly rate?
You cover self-employment tax, insurance, retirement, tools, unpaid admin and time between projects. A 2–3× multiple over an equivalent salary rate is common.
What utilisation should I assume?
Most established freelancers bill 60%–80% of planned hours. New freelancers should assume less.
Should I quote hourly or by project?
Either. Use this rate as your internal floor when pricing fixed-fee work.
Results are estimates based on the information you provide and may differ from your actual paycheck. This calculator is for informational and planning purposes and is not tax, payroll, legal, or financial advice.