Freelance Hourly Rate Calculator

What should you charge per hour? Work backwards from your income goal, expenses, and tax rate to find the minimum rate that makes freelancing sustainable.

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How to calculate your freelance hourly rate

Setting your freelance rate isn't about what you want to earn per hour — it's about what you need to charge to actually hit your income goal after accounting for unbillable time, business expenses, and self-employment taxes.

The formula works backwards: start with your desired take-home income, add business expenses, then gross up for taxes (since freelancers pay both employee and employer portions of self-employment tax), and divide by your actual billable hours. This is your minimum viable rate.

The billable hours reality check

As a freelancer, you only charge for time spent on client work. Admin, marketing, invoicing, meetings, learning, and business development are all unbillable. A realistic freelancer might bill 60–75% of their working hours. Someone working 40 hours/week might only bill 25–30 hours.

Self-employment tax

In the US, self-employed individuals pay 15.3% self-employment tax (covering Social Security and Medicare) on top of regular income tax. Combined with federal and state income tax, effective rates of 30–40% are common. Budget carefully — no employer is withholding for you. Set aside 25–35% of every invoice for taxes.

Your rate is a floor, not a ceiling

This calculator gives you your minimum rate. Your actual rate should be higher based on your expertise, market demand, project complexity, and urgency. Raising rates with existing clients by 10–15% annually is normal and expected. Never set your rate by what you think sounds reasonable — always calculate from your actual costs first.