Freelancer Rate Calculator | Find Your Ideal Hourly Rate

Freelancer Rate Calculator

Stop guessing. Calculate the exact hourly rate you need to charge to hit your income goals, cover expenses, and account for taxes and non-billable time.

Your Variables

$
What you want to take home after taxes and expenses.
$
Software, internet, marketing, insurance, etc.
%
Income and self-employment taxes.
%
Time spent on admin, marketing, emails (usually 20-30%).
%
Extra buffer for business growth and savings.

Your Results

Recommended Hourly Rate

$0.00

Charge this to meet all your goals.

Base Hourly Rate

$0.00 Before profit margin

Estimated Monthly Tax

$0.00 Set this aside

Total Monthly Hours

0 Time at your desk

Billable Hours

0 Time you actually charge for

How It Works

This calculator uses a reverse-engineering approach to find your rate:

  1. Gross Income: We add your desired net income and expenses, then gross it up based on your tax rate.
  2. Billable Hours: We calculate your total working hours and subtract your non-billable percentage.
  3. Base Rate: Gross Income ÷ Billable Hours.
  4. Final Rate: Base Rate + Profit Margin.

Freelancer Tips

  • Track Your Time: You might be surprised how much time goes to non-billable tasks like invoicing and emails.
  • Review Annually: Inflation, rising expenses, and your growing expertise mean your rates should increase every year.
  • Don't Forget Time Off: When setting your "Work Days / Month", remember to account for vacations, sick days, and holidays. (e.g., 48 weeks of work / 12 months = 20 days/month).

Frequently Asked Questions

What is non-billable time?

Non-billable time is any work you do for your business that you can't directly charge a client for. This includes marketing, sales calls, bookkeeping, answering emails, and professional development. For most freelancers, this is between 20% and 40% of their total working time.

Why should I add a profit margin?

Your hourly rate shouldn't just cover your salary and expenses. A healthy business generates profit. This profit can be used to reinvest in better equipment, hire subcontractors, or build a financial runway for slow months.