Freelance Rate Calculator

Calculate your ideal hourly, daily, and monthly freelance rate based on desired income and billable hours.

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Understanding Freelance Pricing

Billable vs. Non-Billable Hours

Not every hour you work earns money. Freelancers spend significant time on proposals, invoicing, client calls, and professional development. If you assume 40 billable hours per week, you are effectively working 50–60 hours total. Price your billable hours to cover the non-billable ones.

Overhead & Business Costs

Your rate must cover software subscriptions, equipment, internet, coworking space, insurance, and accounting fees. These can easily add $5,000–$15,000 per year. Factor them into your desired annual income before calculating your rate.

Taxes for Freelancers

Self-employment tax in the U.S. is roughly 15.3% on top of income tax. Many freelancers set aside 25–30% of revenue for taxes. If your salary target is $80,000, you may need to earn closer to $110,000 in gross revenue to keep $80,000 after taxes and expenses.

Quick Pricing Tips

  • Raise rates annually to keep pace with inflation and your growing expertise.
  • Value-based pricing often beats hourly rates for experienced freelancers—charge for outcomes, not time.
  • Build a buffer by aiming for 10–15% more income than your bare minimum to handle slow months.
  • Track your time for a few weeks to discover your real billable-hour ratio.

Frequently Asked Questions

Divide your desired annual income by the total number of billable hours you plan to work in a year. Total billable hours = (52 - weeks off) × billable hours per week. This gives you the minimum hourly rate to hit your income target.

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