Freelance Hourly Rate Calculator
Work out the true hourly rate you need to charge — factoring in taxes, expenses, time off, and non-billable work — so freelancing actually pays.
Your rate
The maths behind it
| Take-home target | $0 |
| + Tax to cover | $0 |
| + Business expenses | $0 |
| = Gross revenue needed | $0 |
| ÷ Billable hours / year | 0 |
| = Hourly rate | $0 |
Round up to a clean number (e.g. $67 → $75). Clients don't care about odd rates; you do.
Why "salary ÷ 2000 hours" is the wrong formula
A lot of freelancers set their rate by taking a salary they'd want (say $80k) and dividing by 2,000 hours — the classic "full-time year." That gives $40/hour, and it feels reasonable.
It's not. That $80k salary comes with an employer paying half your payroll taxes, offering paid holiday, sick leave, health insurance, retirement match, equipment, training, and covering the 40% of your time that's meetings, learning, and admin. As a freelancer, you are all of that.
The honest formula is: gross revenue needed ÷ billable hours you'll actually deliver. Once you plug real numbers into it, most junior freelancers end up around $50–75/hour, mid-level $85–130, senior specialists $150+.
What counts as a business expense?
- Software subscriptions (design tools, hosting, email, project management)
- Hardware you use for work (laptop, monitor, phone) — amortised
- Coworking or a home-office allowance
- Professional insurance and liability cover
- Accountant / bookkeeper fees
- Marketing: website, ads, portfolio, conferences
- Ongoing learning: books, courses, certifications
Add these up honestly. Most solo freelancers underestimate expenses by 40–60%.
Related calculators
- Markup & margin calculator — for productised services and packages.
- Break-even calculator — how many clients you need to stay afloat.
- VAT calculator — add VAT on top of your quoted rate.
- Income tax calculator — rough tax on your gross revenue.
Frequently asked questions
Why is my freelance rate so much higher than a salary equivalent?
Because you're not paid 40 hours × 52 weeks. You pay your own employer taxes, buy your own equipment, cover holiday and sick days you'd otherwise get paid for, and lose a chunk of every week to admin, sales, and unpaid learning. This calculator makes all of that explicit so your billed hours actually cover it.
What billable-hours percentage should I use?
Most sustainable freelancers bill 50–70% of their working hours. The rest goes to sales calls, invoicing, admin, learning, and unpaid revisions. If you're in a client-services business with long sales cycles, 40–50% is realistic. Only push above 70% if you have a steady retainer book.
Should I include tax in the rate?
Yes — always quote clients your gross rate (before tax), and use the target take-home figure to back into it. Otherwise you'll end up covering the tax out of your own pocket. The tax percentage here is a simple flat estimate; for accuracy, ask your accountant about your local marginal rates including self-employment/social contributions.
How do I turn this into a day rate?
Multiply the hourly rate by the number of billable hours in a typical client day (usually 6–8). Many freelancers charge a slight premium on day rates because a day-long booking blocks other work. Weekly or project rates should typically match or exceed the equivalent hourly total.
Isn't this rate too high?
That's the point — it's what you need to charge, not what feels comfortable. If clients push back, negotiate on scope, deliverables, or payment terms rather than dropping the rate. Undercharging is the single biggest reason freelance businesses fail in year 2.