Freelance Hourly Rate Calculator
Calculate your minimum billable hourly rate from desired take-home income, billable hours, tax rate, and business expenses.
Shows what you actually need to charge.
Most freelancers set rates by looking at what competitors charge, which gives them a market rate but not a survival rate. Those two numbers are different, and confusing them causes chronic undercharging.
The correct starting point is what you need to take home, then work backward:
gross_income_needed = desired_net ÷ (1 - tax_rate) total_revenue_needed = gross_income_needed + annual_expenses minimum_rate = total_revenue_needed ÷ actual_billable_hours
The tricky part is the last denominator. Working 40 hours a week does not mean billing 40 hours.
Time goes to: admin, invoicing, email, sales, networking, professional development, and waiting for clients who are late with feedback.
A realistic billable rate for solo freelancers is 60-70% of working hours.
For a freelancer working 45 weeks per year at 40 hours per week with 65% billability: billable_hours = 45 × 40 × 0.65 = 1,170 hours per year
If this person wants $80,000 take-home, has a 25% self-employment tax rate, and $6,000 in annual business expenses: gross_needed = 80,000 ÷ 0.75 = $106,667 total_revenue = $106,667 + $6,000 = $112,667 minimum_rate = $112,667 ÷ 1,170 = $96.30/hour
That $96 rate often surprises people who were thinking $65-70.
This is why underpriced freelancers work constantly and still feel financially squeezed.
This calculator shows the minimum rate — the floor below which you are effectively paying to work.
Your actual rate should be higher based on expertise, market demand, and what your work is worth to clients.