Freelance Rate Calculator | Calculate Your Ideal Hourly Rate

💰 Your Income Goals

Desired Annual Income Take-home pay goal

Tax Rate Self-employment + income

📊 Business Expenses (Monthly)

Software & Tools

Office/Coworking

Health Insurance

Retirement Savings

Marketing & Ads

Other Expenses

⏰ Time & Availability

Hours Worked Per Week 40 hours

Billable Percentage 60%

Time spent on client work vs. admin, marketing, learning

Weeks Off Per Year 4 weeks

Your Minimum Hourly Rate

$85.00

Before taxes & expenses

Daily Rate

$680

Weekly Rate

$3,400

Monthly Revenue

$14,733

Billable Hours/Year

1,152

Annual Breakdown

Gross Revenue Needed $176,800

- Taxes (~30%) -$53,040

- Annual Expenses -$15,600

= Net Income $75,000

How to Calculate Your Freelance Rate

Setting the right freelance rate is crucial for building a sustainable business. Many freelancers undercharge because they only consider their desired hourly wage, forgetting about taxes, expenses, and non-billable time.

The Formula

Freelance Rate Formula

Hourly Rate = (Desired Income + Taxes + Expenses) ÷ Billable Hours

Key Factors to Consider

Self-Employment Taxes: You pay both employer and employee portions (~15.3% for Social Security/Medicare in the US), plus income tax
Health Insurance: No employer coverage means you pay full premiums
Retirement: No 401k matching—you're responsible for your own retirement savings
Non-Billable Time: Admin, marketing, proposals, learning—often 40% or more of your time
Paid Time Off: Vacations, sick days, holidays—all unpaid as a freelancer

Industry Benchmarks

Common freelance rates by field (US averages, 2024):

Web Developer: $75 - $150/hour
Graphic Designer: $50 - $100/hour
Writer/Copywriter: $50 - $150/hour
Marketing Consultant: $100 - $250/hour
Business Consultant: $150 - $500/hour

Tips for Pricing Your Services

🎯 Tip 1: Consider Value-Based Pricing

Instead of hourly rates, price based on the value you deliver. A logo that helps a company make millions is worth more than hours spent creating it.

💡 Tip 2: Always Build in a Buffer

Add 10-20% to your calculated rate for emergencies, slow periods, and scope creep. It's easier to discount than to raise prices.

📈 Tip 3: Raise Rates Annually

Increase your rates by at least 5-10% each year to keep up with inflation and reflect your growing experience.