Freelance Rate Calculator

Calculate your freelance hourly rate based on income, expenses, and working days. Free freelance rate calculator — find your minimum hourly rate.

Desired Annual Income *

Annual Business Expenses

Vacation Days

Sick Days

Billable Hours/Day *

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Ready to calculate

Enter your desired income above to see your minimum hourly and daily rates.

How to Use This Freelance Rate Calculator

Enter your desired annual income — what you want to take home (before taxes).
Add annual business expenses — software, insurance, equipment, professional development.
Set your time off — vacation and sick days you plan to take.
Enter billable hours per day — be realistic about how many hours clients actually pay for.
See your rates — hourly, daily, weekly, and monthly.

How to Set Your Freelance Rate

The biggest mistake freelancers make: treating their rate like a salary. A $100/hr freelance rate is not the same as a $100/hr employee salary. Freelancers pay their own taxes, benefits, equipment, and non-billable time.

The Formula

Working Days = 260 days/year − Vacation Days − Sick Days
Total Annual Needs = Desired Income + Business Expenses
Total Billable Hours = Working Days × Billable Hours/Day

Hourly Rate = Total Annual Needs ÷ Total Billable Hours
Daily Rate = Hourly Rate × Billable Hours/Day
Weekly Rate = Daily Rate × 5
Monthly Rate = Total Annual Needs ÷ 12

Example: You want $80,000/year take-home, $6,000 in business expenses, 15 vacation + 10 sick days, 6 billable hours/day:

Working Days = 260 − 15 − 10 = 235 days
Total Annual Needs = $80,000 + $6,000 = $86,000
Billable Hours = 235 × 6 = 1,410 hours/year
Hourly Rate = $86,000 ÷ 1,410 = $60.99/hr

Why Freelancers Undercharge

The “salary trap”: a $60,000 salary employee costs ~$75,000–85,000 total to an employer (benefits, taxes, equipment, overhead). A $60,000/year freelancer needs to charge enough to cover all those costs themselves AND account for non-billable time.

What to Include in Business Expenses

Category	Examples	Typical Annual Cost
Software	Design tools, dev tools, office apps	$500–3,000
Insurance	Professional liability, health	$1,500–8,000
Equipment	Laptop, monitors, peripherals	$500–2,000/yr amortized
Professional	Courses, certifications, conferences	$500–2,000
Marketing	Website, portfolio hosting	$200–1,000

Frequently Asked Questions

How many hours can I actually bill per day?

Most freelancers bill 4–6 hours per day realistically. The rest is admin, marketing, meetings, learning, and non-billable work. Using 6 is a reasonable starting point; be honest with yourself — if you're getting 4 billable hours, use 4. Overestimating leads to undercharging.

Should I charge hourly or project-based?

Both have merits. Hourly protects you if scope creeps but caps your earning potential. Project rates reward efficiency — the faster you work, the more you effectively earn per hour. Most experienced freelancers move toward project-based pricing as they get faster and better.

How do I raise my rates?

Raise rates with new clients immediately. For existing clients, give 60–90 days notice and frame it as a reflection of increased value and market rates. Specializing in a niche, developing a portfolio, or getting certifications can justify faster rate increases.

What if my rate seems too high?

First, verify you're not underestimating expenses or overestimating billable hours. Then research market rates for your specialty. If you're genuinely above market, focus on niching down, building case studies, or targeting premium clients who value your expertise over price.

How do I account for taxes in my rate?

Self-employment tax in the US is about 15.3% on top of income tax. A rough rule: multiply your desired take-home income by 1.30–1.35 to gross up for taxes. This calculator uses your desired take-home — remember to set aside 25–30% of each payment for taxes.

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