Freelance Rate Calculator
Calculate your ideal freelance hourly rate based on your desired annual income, expenses, billable hours, and self-employment taxes.
Your Freelance Rate
How to Calculate Your Freelance Rate
Setting your freelance rate requires accounting for all costs that an employer would normally cover:
Billable hours are typically only 60-70% of your total working time. The rest goes to admin, marketing, invoicing, and other non-billable work. If you work 40 hours a week, you might only bill 25-30.
Self-employment taxes are higher than employee taxes because you pay both the employer and employee portions of Social Security and Medicare (about 15.3% in the US), plus income tax.
Business expenses include software subscriptions, equipment, health insurance, office space, professional development, and any other costs of running your freelance business.
Adding a profit margin ensures you can save for retirement, build an emergency fund, and reinvest in your business.
Frequently Asked Questions
Most freelancers bill 20-30 hours per week out of a 40-hour work week. The remaining time goes to proposals, invoicing, marketing, emails, and administrative tasks. Start with 25 hours as a realistic estimate.
US freelancers typically face a combined rate of 25-35%, which includes self-employment tax (15.3%) plus federal and state income taxes. A 30% estimate works for most situations, but consult a tax professional for your specific case.
Many freelancers have different rates for different services. Use this calculator as a baseline minimum rate, then adjust upward for specialized or high-value work.
A freelance rate of $75/hour is roughly equivalent to a $100,000 salary when you account for self-employment taxes, health insurance, retirement, paid time off, and other benefits an employer would cover.
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