How the freelance rate calculator works
The calculator grosses up your take-home goal for taxes, adds business expenses, and divides by the hours you can actually bill.
Billable hours = Hours per week × Working weeks
Hourly rate = Revenue needed ÷ Billable hours
Few freelancers bill 40 hours a week: admin, marketing, invoicing and gaps between clients usually take 25% to 40% of working time. Working weeks should leave room for vacation, holidays and sick days. US freelancers pay 15.3% self-employment tax on most net earnings on top of income tax, so a combined 25% to 35% is a common planning figure.
Worked example
To take home $80,000 at a 30% total tax rate you need $114,286 before tax, plus $10,000 of expenses: $124,286 of revenue. Billing 25 hours a week for 46 weeks gives 1,150 hours, so your minimum rate is $108.07 an hour, or about $865 a day.
Frequently asked questions
How do I set my freelance rate?
Start from your income goal, add taxes and expenses, and divide by realistic billable hours. Then compare with market rates.
How many billable hours do freelancers work?
Often 20 to 30 a week; the rest goes to running the business.
Why is my freelance rate so much higher than my old hourly wage?
Employers pay half of payroll taxes, benefits, equipment and paid time off. As a freelancer you cover all of them.
Should I charge hourly or per project?
Project pricing can earn more as you get faster, but needs clear scopes. Your hourly rate helps price projects.
Updated October 2026. Results are estimates for education, not financial or medical advice. All math runs in your browser; nothing you type is sent anywhere.