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My Earnings Calculator

Freelance Rate Calculator

Find the minimum hourly rate you need to charge to hit your income goal as a freelancer or contractor.

Your details

$
$

Software, equipment, insurance, workspace.

%
hrs
wks

Vacation, holidays and sick days.

%

Admin, sales, invoicing and learning.

Minimum hourly rate

$89.03

Gross pay before taxes and deductions

Required annual revenue

$114,666.67

Pre-tax income needed

$106,666.67

Billable hours per year

1,288 hrs

Working weeks

46

Equivalent day rate

$498.55

Billable hours per day

Monthly revenue target

$9,555.56

How this was calculated
  • Pre-tax income: $80,000.00 ÷ (1 − 25%) = $106,666.67
  • Revenue: $106,666.67 + $8,000.00 expenses = $114,666.67
  • Billable hours: 40 × 46 wks × 70% = 1,288 hrs
  • Rate: $114,666.67 ÷ 1,288 = $89.03

How to calculate a freelance hourly rate

The most common freelancing mistake is taking an old salary, dividing by 2,080 hours and charging that. Freelancers don't get paid holidays, employer benefits or paid admin time — so a sustainable rate must be significantly higher.

  1. Pre-tax income = target take-home ÷ (1 − tax set-aside %)
  2. Required revenue = pre-tax income + business expenses
  3. Billable hours = hours per week × (52 − weeks off) × (1 − non-billable %)
  4. Minimum rate = required revenue ÷ billable hours
Example: Riley wants $70,000 take-home, has $6,000 in expenses and sets aside 25% for tax. Pre-tax income = $93,333.33, revenue = $99,333.33. Working 40 hours for 46 weeks with 30% non-billable time gives 1,288 billable hours. Minimum rate: $77.12/hr.

Key terms

  • Billable hours — time you can invoice a client for.
  • Non-billable time — essential work you can't charge for: proposals, invoicing, bookkeeping, networking.
  • Day rate — what one day's billable work is worth at your hourly rate.

Weighing freelancing against a salaried role? Convert the salary with the salary to hourly calculator, then compare with your freelance rate.

Frequently asked questions

Why is my freelance rate so much higher than my old hourly wage?

Freelancers pay their own expenses and taxes, get no paid leave and spend a lot of time on unbillable work. The rate has to cover all of that.

What percentage of time is non-billable?

Many freelancers spend 20–40% of their working time on admin, marketing, sales and learning. Track your own time for a few weeks to find your number.

Is the tax set-aside accurate?

It's a simple estimate. Self-employment taxes vary by country and income. Ask an accountant for an exact figure.

Should I charge exactly this rate?

Treat it as your floor. Market rates, your experience and the value you deliver may justify charging more.

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