✦ Free Tool · Updated 2026

Freelance Hourly
Rate Calculator

Find out exactly what to charge per hour — based on your income goal, expenses, taxes, and working hours. Takes 30 seconds.

$ / yr
$ / mo
hrs
%
wks
%
Minimum rate
$—
Break-even · no profit
⭐ Recommended rate
$—
Includes 20% profit margin
Billable hrs / year
—
Gross income needed
—
Annual expenses
—
Day rate (8 hrs)
—
⚠️ Billable % above 85% is rarely realistic. Most freelancers bill 60–75% of their time — the rest goes to admin, proposals, and unpaid work.

How to Use This Calculator

This tool calculates your minimum freelance hourly rate — the floor below which you should never go — and a recommended rate with a healthy 20% profit margin built in.

1
Enter your income goal — the amount you want to take home after taxes. Be honest about your lifestyle and savings goals.
2
Add your monthly expenses — software subscriptions, hardware, internet, insurance, coworking space, accountant fees. Everything counts.
3
Set realistic billable hours — most freelancers only bill 60–75% of their working time. Lower this from 100% to get an honest picture.
4
Include your tax rate — as a self-employed person, you pay income tax plus self-employment tax. In the US, budget 25–35%. In the UK, 20–30%.
The Formula Behind This Calculator Annual Expenses = Monthly Expenses × 12 Gross Income Needed = (Income Goal + Annual Expenses) ÷ (1 − Tax Rate) Billable Hours / Year = Hours/Week × Billable % × Weeks/Year Minimum Rate = Gross Income Needed ÷ Billable Hours Recommended Rate = Minimum Rate × 1.20

Why Your Rate Is Probably Too Low

Most new freelancers undercharge — often by 30–50%. The most common mistake is calculating a rate based on 40 fully billable hours per week, 52 weeks a year. In reality, a huge chunk of your time goes to non-billable work: writing proposals, handling admin, chasing invoices, keeping skills current.

A useful gut-check: if you've never had a client push back on your rate, you're likely charging too little. Pricing signals quality. Clients who only shop on price are rarely the clients you want long-term.

Frequently Asked Questions

How do I calculate my freelance hourly rate?
Add your desired annual income and annual business expenses, divide by (1 minus your tax rate) to find the gross amount you need to earn, then divide by your billable hours per year. That's your minimum rate. Add 15–20% as a profit buffer to get your recommended rate.
What is a good hourly rate for a freelancer?
There's no single answer — it depends on your industry, experience, and location. A freelance graphic designer might charge $50–80/hr, while a senior software developer can command $120–200+/hr. Use this calculator to find your personal minimum, then research your market rate on Upwork, LinkedIn, and industry surveys to see where you fit.
How many billable hours should I plan for?
Most experienced freelancers realistically bill 60–75% of their working time. Working 40 hrs/week means 24–30 truly billable hours. The rest goes to proposals, admin, marketing, and professional development. This calculator defaults to 70%, which is a healthy and realistic target for a full-time freelancer.
What tax rate should I enter as a freelancer?
In the US, self-employed individuals pay 15.3% self-employment tax plus federal and state income tax — a safe estimate is 25–30% for most freelancers. In the UK, 20–25% covers most basic-rate taxpayers. In Australia, 25–35% is typical. Always confirm with a tax professional for your specific situation.
Should I charge the same rate for every client?
Not necessarily. Many experienced freelancers charge different rates based on project complexity, urgency, or client type. Rush projects typically command a 25–50% premium. Long-term retainer clients might get a small discount in exchange for income predictability. This calculator gives you your floor — your strategy and positioning determine your ceiling.

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