Freelancer Rate Calculator
Calculate your ideal hourly rate based on income goals, taxes, expenses, and available work time. Perfect for freelancers, consultants, and contractors.
Freelancer Rate Calculator
Income & Costs
Work Schedule
Admin, marketing, accounting, etc.
Time Off (Days Per Year)
Your Rates
Financial Breakdown
Time Breakdown
Rate Comparison
See how different hourly rates translate to your annual take-home pay.
| Hourly Rate | Daily Rate | Annual Gross | Take-Home |
|---|---|---|---|
| $50/hr | $400/day | $73,600 | $50,200 |
| $75/hr | $600/day | $110,400 | $77,800 |
| $100/hr | $800/day | $147,200 | $105,400 |
| $125/hr | $1,000/day | $184,000 | $133,000 |
| $150/hr | $1,200/day | $220,800 | $160,600 |
| $200/hr | $1,600/day | $294,400 | $215,800 |
Account for Non-Billable Time
Most freelancers spend 15-30% of their time on admin, marketing, and client acquisition. Factor this into your rate calculations.
Don't Forget Benefits
Employees get health insurance, retirement matching, and paid leave. Your rate should cover these costs that you now pay yourself.
Build in a Buffer
Consider adding 10-20% to your calculated rate for unexpected expenses, slow months, and business growth investments.
How to Use the Freelancer Rate Calculator
Enter Your Desired Annual Income
Start by entering how much you want to take home after taxes per year. This is your target net income - what you actually want to spend and save.
Add Your Business Expenses
Input your estimated annual business expenses including software subscriptions, equipment, health insurance, retirement contributions, and professional development costs.
Set Your Tax Rate and Work Schedule
Enter your estimated tax rate (typically 25-35% for freelancers), work days per week, hours per day, vacation days, and what percentage of your time is billable.
Review Your Calculated Rates
View your recommended hourly, daily, weekly, and monthly rates. The calculator shows the gross income you need to earn to hit your take-home target after all expenses and taxes.
Pro tip: Your data is processed entirely in your browser. Nothing is sent to any server, ensuring complete privacy.
How to Set Your Freelance Rate
Setting the right freelance rate is crucial for building a sustainable business. Too low, and you'll burn out working long hours for little pay. Too high, and you may struggle to find clients. The key is calculating a rate that covers all your costs while providing the income and lifestyle you desire.
Unlike employees, freelancers must account for self-employment taxes, health insurance, retirement savings, equipment, software, and unpaid time off. These hidden costs can add 30-50% to what you need to earn compared to a salaried position.
The Freelance Rate Formula
- Step 1: Determine your desired annual take-home pay (what you want to actually spend/save)
- Step 2: Add annual business expenses (software, equipment, insurance, office, etc.)
- Step 3: Gross up for taxes (divide by (1 - tax rate) to find pre-tax income needed)
- Step 4: Calculate billable hours (work days × hours × billable percentage)
- Step 5: Divide gross income by billable hours = your hourly rate
Common Freelance Expenses
- • Health insurance ($200-800/month)
- • Retirement contributions (10-20% of income)
- • Software subscriptions ($50-500/month)
- • Equipment and upgrades ($1,000-5,000/year)
- • Professional development ($500-2,000/year)
- • Accounting and legal ($500-2,000/year)
Industry Rate Ranges
- • Writing/Content: $50-150/hour
- • Graphic Design: $50-150/hour
- • Web Development: $75-200/hour
- • Marketing/SEO: $75-200/hour
- • Business Consulting: $150-500/hour
- • Legal/Financial: $200-500+/hour
Frequently Asked Questions
How do I calculate my freelance hourly rate?
To calculate your freelance hourly rate: 1) Determine your desired annual take-home income, 2) Add business expenses, 3) Account for taxes (typically 25-35%), 4) Divide by your billable hours per year. Our calculator automates this and accounts for vacation, sick days, and non-billable time.
What is a good freelance rate for beginners?
Beginner freelance rates vary by industry. Generally, new freelancers start at $25-50/hour for writing and design, $50-100/hour for web development, and $75-150/hour for specialized consulting. Research your market and consider starting slightly lower while building your portfolio.
How much should I charge to make $100,000 as a freelancer?
To take home $100,000 as a freelancer, you typically need to bill $150,000-175,000 gross (accounting for ~30% taxes and expenses). At 1,500 billable hours per year, that means charging approximately $100-115 per hour.
What percentage of my time is actually billable?
Most freelancers can only bill 60-80% of their working hours. The rest goes to admin tasks, marketing, invoicing, client communication, and professional development. Our calculator uses 80% as default, but adjust based on your experience.
Should I charge hourly or daily rates?
Daily rates work better for longer projects and prevent scope creep. Hourly rates offer flexibility for varied tasks. Many freelancers offer both: hourly for small tasks and daily rates (typically 6-8 hours) for larger projects with a slight discount.
How do freelance taxes work?
Freelancers pay self-employment tax (~15.3% in the US) plus income tax. Total effective tax rate is typically 25-40% depending on income. Set aside 25-30% of every payment for taxes. Consider quarterly estimated tax payments to avoid penalties.
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