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Freelance Hourly Rate Calculator
Stop undercharging. This calculator finds the hourly rate you actually need — covering taxes, vacation, and the admin work nobody bills for.
The formula behind the rate
1. Gross it up for taxes. Your rate has to cover self-employment tax (15.3%) plus federal and state income tax — on top of the take-home income you actually want. Freelancers typically set aside 25–35% of every payment.
2. Count only billable hours. A 40-hour week is not 40 billable hours: proposals, emails, bookkeeping, and marketing eat 20–30% of your time. This calculator discounts your hours by that percentage automatically.
3. Divide.Gross income needed ÷ billable hours = the minimum rate that keeps you whole. If the market won't pay it, you'll see the gap clearly instead of discovering it in April.
Frequently asked questions
My market rate is lower than this calculator says. What do I do?
The gap is real information: either your take-home target, hours, or tax assumptions need adjusting — or you're in the wrong price bracket. Many freelancers raise their rate 10-20% and lose no clients; the ones who walk were often the worst payers.
Do I really need to include a tax rate?
Yes — taxes are the #1 reason freelancers underprice. $70,000 billed at a 'salary-like' rate can become $50,000 net after SE tax and income tax.
What about tools, software, and insurance costs?
Add fixed business costs (software, insurance, equipment) to your target income before calculating — they're part of the gross you need to bill.
Should I charge hourly or fixed price?
Hourly rewards inefficiency; fixed prices reward speed. Most freelancers win by quoting fixed prices with a scope buffer, using this hourly rate as the profitability floor.
Track the income you work so hard to bill
Import your bank CSVs and Tally Assistant categorizes everything, sends invoices with PayPal links, and chases late payments — so the hours you bill actually turn into cash.