Freelance Rate Calculator — What Should You Charge Per Hour?
Calculate the minimum hourly rate you need to charge as a freelancer to meet your income goals. Enter your desired annual income, work hours, vacation days, and business expenses to find your break-even rate — and what to charge to actually profit.
Most freelancers undercharge because they forget to account for taxes, non-billable hours, and business expenses. This calculator accounts for everything.
Free foreverNo data storedInstant resultsAccurate formula
Your income goals and work schedule
Enter your desired annual income to calculate your minimum freelance rate.
Your freelance rate breakdown
Minimum hourly rate
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Recommended rate (+20%)
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Total billable hours/year
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Required gross revenue
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Tax amount
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Monthly take-home
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How to Set Your Freelance Rate
Most freelancers make the mistake of dividing their desired salary by 2,080 (52 weeks × 40 hours). This ignores taxes, non-billable time, business expenses, and the fact that you won't bill every working hour.
The minimum rate is your break-even point — it covers expenses and taxes but leaves no profit buffer. Adding 20% gives you room for slow months, scope creep, late payments, and business growth investment. It also gives you negotiating room with clients.
Non-billable time
As a freelancer, not every working hour is billable. You spend time on: invoicing, client communications, marketing, project management, professional development, and admin. This calculator uses your billable hours directly — make sure you're realistic about how many hours you can actually bill each week.
Frequently Asked Questions
How do I calculate my freelance hourly rate?
Start with your desired annual income, add business expenses, then divide by (1 minus tax rate) to get required gross revenue. Divide by your annual billable hours to get the minimum hourly rate. Add 20-30% buffer for profit and negotiation room.
Why is my freelance rate higher than my salary rate?
As a freelancer, you pay both employer and employee portions of social security/Medicare (15.3% in the US), have no paid vacation, no employer benefits, and have business expenses. Freelancers typically need to charge 1.5-2x their equivalent employee hourly rate.
How many billable hours per week is realistic?
Most full-time freelancers bill 25-35 hours per week, not 40. The rest goes to admin, marketing, invoicing, and unpaid project management. Be conservative in your estimate — it's better to exceed your income goal than fall short.
Should I charge hourly or by project?
Project-based pricing is often more profitable once you're experienced — you benefit from working faster. Hourly is safer when starting out or for uncertain-scope projects. Many freelancers use project pricing but calculate it based on estimated hours × their hourly rate × a buffer.