Freelance Rate Calculator
Calculate the hourly rate you need to charge to hit your income goal, after accounting for expenses, taxes, and non-billable time.
Why billable hours are lower than total working hours
This is the single biggest mistake freelancers make when setting rates — assuming all working hours are billable. In reality, time spent on invoicing, marketing, client communication, admin, and finding new work isn't billable, which is why the billable hours field in this calculator should reflect only hours actually spent on paid client work, not your total working hours.
Many freelancers find that only 50-70% of their total working time ends up being billable once non-client work is accounted for — using your total working hours instead of realistic billable hours will significantly undercharge you.
Why taxes and expenses both matter here
As a freelancer, you're typically responsible for self-employment tax and income tax that an employer would otherwise partially cover or withhold automatically — factoring in an estimated tax rate ensures your target 'take-home' income is actually achievable after taxes, not before.
Business expenses (software subscriptions, equipment, home office costs, insurance) also need to be covered by your rate — since these come out of revenue before you see any personal income, forgetting to include them means your actual take-home will fall short of your goal.
Frequently asked questions
Why isn't my hourly rate just my income goal divided by total hours worked?
Because not all working hours are billable to clients — time spent on admin, marketing, and finding new work reduces your actual billable hours below your total working hours, so your rate needs to be higher to compensate.
Should I include taxes in my rate calculation?
Yes — freelancers are typically responsible for self-employment and income tax that isn't withheld automatically, so your target take-home income needs to be grossed up to account for taxes you'll owe.