Freelancer Contract Rate Calculator
Calculate your freelance hourly or project rate.
Factor in taxes, expenses, benefits, and billable hours for a fair rate.
Recommended Rate
Your data stays in your browser. We do not store, collect, or transmit any information you enter.
Freelance rate calculation accounts for all costs an employer would normally cover.
Formula:
Hourly Rate = (Desired Salary + Taxes + Benefits + Expenses) / Billable Hours
Key factors:
- Self-employment tax: 15.3% in the US (Social Security + Medicare)
- Income tax: Varies by bracket (estimate 20-30%)
- Health insurance: $300-800/month for an individual
- Retirement savings: 10-15% of income
- Business expenses: Software, equipment, internet, etc.
Billable hours reality:
| Work Hours | Actually Billable |
|---|---|
| 2,080/year (40 hrs/week) | ~1,200-1,500 |
| Reason | Admin, marketing, invoicing, vacation |
General rule of thumb: Take your desired salary, divide by 1,000. That gives a rough hourly rate. $80,000 salary ÷ 1,000 = $80/hour as a freelancer.
Then add 20-40% for taxes and overhead.