Freelance Rate Calculator
Find the minimum hourly rate you need to charge to meet your income goal as a freelancer.
Income Goal
Software, equipment, insurance, etc.
Tax & Hours
SE tax ≈ 15.3% + income tax. 25–35% is typical.
Not all working hours are billable (admin, sales, etc.)
Min. Hourly Rate
Day Rate (8hr)
Annual Revenue Needed
Total Billable Hours/yr
💡 Rate Recommendation
Frequently Asked Questions
Why is my freelance rate higher than my employee equivalent?▼
As a freelancer, you pay both halves of Social Security and Medicare (15.3% self-employment tax), plus you have no employer benefits. You also have unpaid admin time, gaps between projects, and business expenses. A freelancer charging $75/hr is roughly equivalent to a $50/hr employee.
What is a billable hour?▼
A billable hour is time you can charge a client for. In a typical 40-hour week, freelancers average 20–30 billable hours — the rest goes to finding clients, invoicing, emails, learning, and administration.
How do I set my rate when starting out?▼
Research what other freelancers in your field charge (use sites like Glassdoor, LinkedIn, and freelancer communities). Start at the low end of the market rate for your niche, but never below your minimum calculated rate — you'll lose money.
Should I charge hourly or project-based?▼
Experienced freelancers often prefer project-based pricing because it rewards efficiency. When you're starting out, hourly is easier to justify. Use this hourly rate as your baseline to price projects: estimate hours needed × your rate, then add a buffer.