Freelance Rate Calculator
Your freelance rate has to cover more than a salary: taxes, business expenses, unpaid admin time and time off. To take home $60,000 with 25 billable hours a week, you typically need to charge $87.36 an hour or more (with the assumptions below).
- Rate = (income ÷ (1 − tax) + expenses) × (1 + margin) ÷ billable hours.
- Most freelancers bill only 50–75% of the hours they work.
- US self-employment tax is 15.3% on 92.35% of net earnings.
- Day rate ≈ hourly rate × 8.
How to calculate your freelance rate
- Start with the income you want to keepYour take-home pay after tax — e.g. $60,000.
- Gross it up for tax$60,000 ÷ (1 − 0.28) = $83,333 before tax.
- Add business expenses+ $8,000 = $91,333.
- Add a marginA 10% buffer for slow months and growth: $100,467.
- Divide by billable hours25 billable hours × 46 weeks = 1,150 hours → $87.36 an hour.
How to use the Freelance Rate calculator
Fill in the fields above and press Calculate. Results appear straight away, in your browser — nothing is sent or stored.
- Take-home income you want — starts at 60000; replace it with your own figure.
- Business expenses — Software, equipment, insurance, accounting, workspace.
- Total tax rate on profit — Income tax plus self-employment tax.
- Billable hours per week — starts at 25; replace it with your own figure.
- Working weeks per year — 52 minus vacation, holidays and sick time.
- Profit / safety margin — starts at 10; replace it with your own figure.
Change any value and press Calculate again to compare scenarios. All figures are estimates for planning; check them against your own policy, contract and local rules before using them for payroll.
Freelance rate chart
Minimum hourly rates for different income targets and billable hours (28% tax, $8,000 expenses, 46 working weeks, 10% margin):
| Take-home target | 20 billable h/wk | 25 billable h/wk | 30 billable h/wk |
|---|---|---|---|
| $40,000 | $75.99 | $60.79 | $50.66 |
| $50,000 | $92.60 | $74.08 | $61.73 |
| $60,000 | $109.20 | $87.36 | $72.80 |
| $75,000 | $134.11 | $107.29 | $89.41 |
| $90,000 | $159.02 | $127.22 | $106.01 |
| $100,000 | $175.63 | $140.50 | $117.09 |
| $120,000 | $208.84 | $167.07 | $139.23 |
| $150,000 | $258.66 | $206.93 | $172.44 |
Notice how much billable hours matter: going from 20 to 30 billable hours a week cuts the required rate by a third.
Freelance rate quick answers
What should I charge per hour to make $40,000?
With 25 billable hours a week, 46 weeks, 28% tax, $8,000 expenses and a 10% margin: at least $60.79 an hour ($486.34 a day).
What should I charge per hour to make $50,000?
With 25 billable hours a week, 46 weeks, 28% tax, $8,000 expenses and a 10% margin: at least $74.08 an hour ($592.62 a day).
What should I charge per hour to make $75,000?
With 25 billable hours a week, 46 weeks, 28% tax, $8,000 expenses and a 10% margin: at least $107.29 an hour ($858.32 a day).
What should I charge per hour to make $100,000?
With 25 billable hours a week, 46 weeks, 28% tax, $8,000 expenses and a 10% margin: at least $140.50 an hour ($1,124.02 a day).
What should I charge per hour to make $150,000?
With 25 billable hours a week, 46 weeks, 28% tax, $8,000 expenses and a 10% margin: at least $206.93 an hour ($1,655.42 a day).
Why billable hours are lower than you think
A 40-hour week as a freelancer is rarely 40 billable hours. Sales calls, proposals, invoicing, bookkeeping, learning and admin all take time nobody pays for. Many freelancers find 20–30 billable hours a week is realistic. Track every hour for a month — billable and not — to find your real number; the billable hours calculator turns it into a utilization rate.
Worked examples
Real-world scenarios, worked through step by step.
Designer
Wants $70,000 take-home, $6,000 expenses, 30% tax, 24 billable hours × 45 weeks, 10% margin: ($100,000 + $6,000) × 1.1 ÷ 1,080 = $107.96 an hour.
Developer day rate
Needs $95 an hour → $760 a day for 8 hours.
Part-time freelancer
$25,000 take-home, $3,000 expenses, 22% tax, 12 billable hours × 44 weeks, no margin: ($32,051 + $3,000) ÷ 528 = $66.38.
Raising billable hours
Moving from 20 to 25 billable hours a week cuts the required rate by 20% for the same income.
Taxes for freelancers
- In the US, self-employed people pay self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net earnings, on top of income tax. Half of it is deductible.
- Taxes are not withheld, so freelancers usually make quarterly estimated tax payments.
- Business expenses reduce taxable profit — keep records.
- Rules differ by country; enter your own combined rate.
Hourly, day rate or project pricing?
Your hourly rate is the floor, not necessarily the price. Day rates (hourly × 8 or so) suit on-site and full-day work. Fixed project prices reward efficiency but need good estimates — track time on fixed-price work anyway, so you know whether the price was right. Retainers give predictable income for a block of hours. See tracking and paying freelancers for the client side.
Comparing with a salaried job
To match a salary, a freelancer needs to cover what an employer would pay on top of wages — payroll taxes, benefits, paid leave, equipment. The employee cost calculator shows that total; dividing it by realistic billable hours gives a fair comparison rate. The salary to hourly calculator converts the salary itself.
Checklist before you quote
- Does the rate cover your target income after tax at realistic billable hours?
- Have you included all business expenses, including insurance and accounting?
- Is there a margin for slow months and late payments?
- Have you agreed what is billable — calls, travel, revisions?
- Is the scope written down, with a process for changes?
- Are payment terms clear (e.g. 14 days, deposits for large projects)?
Track time on every project, including fixed-price ones, so the next quote is based on real hours. A simple time tracker per client is enough.
Raising your rate with existing clients
Give notice (30–60 days is common), explain briefly (higher costs, more experience, demand), and apply new rates to new work or from a fixed date. Many freelancers review rates annually and raise them for new clients first. If you are consistently fully booked, your rate is probably too low.
How different industries use it
- agencies: Agencies hiring freelancers pay day or project rates; freelancers should price revisions explicitly.
- software teams: Contract developers often bill day rates for embedded work and hourly for support.
- consultancies: Independent consultants usually price engagements, but the hourly floor still decides whether a fee is viable.
- Design and content: Per-deliverable pricing is common; tracking time shows which deliverables are profitable.
- Virtual assistants and support: Hourly or retainer pricing with tracked hours is the norm.
Billable hours a year by schedule
Yearly billable hours — the denominator in every rate calculation — for common schedules:
| Billable h/week | 44 weeks | 46 weeks | 48 weeks |
|---|---|---|---|
| 15 | 660 | 690 | 720 |
| 20 | 880 | 920 | 960 |
| 25 | 1,100 | 1,150 | 1,200 |
| 30 | 1,320 | 1,380 | 1,440 |
| 35 | 1,540 | 1,610 | 1,680 |
A full-time employee is paid for 2,080 hours; a freelancer billing 25 hours for 46 weeks sells 1,150. That gap is the main reason freelance rates are higher than employee hourly wages for similar work.
Do it in Excel or Google Sheets
Income B1, expenses B2, tax % B3, billable hours/week B4, weeks B5, margin % B6.
- Pre-tax income needed
=B1/(1-B3) - Revenue needed
=(B1/(1-B3)+B2)*(1+B6) - Minimum hourly rate
=(B1/(1-B3)+B2)*(1+B6)/(B4*B5) - Day rate (8 h)
=8*(B1/(1-B3)+B2)*(1+B6)/(B4*B5)
Format B3 and B6 as percentages.
Who uses the Freelance Rate calculator — and why
- New freelancers setting a first rate.
- Contractors checking whether a client’s rate is viable.
- Consultants moving from a salaried role.
- Agencies pricing freelance capacity.
- Side hustlers pricing part-time work.
- Clients understanding what a fair rate includes.
How we calculate
- Pre-tax income = take-home target ÷ (1 − tax rate). Revenue = (pre-tax income + expenses) × (1 + margin). Rate = revenue ÷ (billable hours per week × working weeks).
- US self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of net earnings, per IRS Schedule SE — include it in your tax rate.
- All calculations run in your browser; nothing you type is sent to StaffTiming or stored.
Formulas checked against the sources above. Last reviewed: October 2026. This tool gives estimates for planning, not legal, tax or payroll advice.
Key terms explained
- Billable hours
- Hours a client pays for.
- Utilization
- Billable hours ÷ total hours worked.
- Self-employment tax
- US Social Security and Medicare tax for the self-employed, 15.3%.
- Day rate
- A fixed price for a working day.
- Retainer
- A recurring fee for a reserved block of time.
- Gross-up
- Converting a take-home figure into a pre-tax figure.
- Overhead
- Business costs not tied to one client.
- Margin
- Extra above costs for profit and risk.
Frequently asked questions
How much should I charge as a freelancer?
At least enough to cover your target income, taxes, expenses and unbilled time — use the calculator to find the minimum.
How many billable hours can a freelancer do?
Often 20–30 a week once admin, sales and learning are counted.
Should I charge hourly or per project?
Hourly is simplest for open-ended work; projects suit well-defined deliverables. Track hours either way.
How do I convert a salary to a freelance rate?
Add employer-side costs to the salary and divide by realistic billable hours.
What is self-employment tax?
In the US, 15.3% for Social Security and Medicare on 92.35% of net earnings.
How much should I add for expenses?
Everything the business pays for: software, hardware, insurance, accounting, workspace, training.
When should I raise my rate?
When you are fully booked, your skills grow, or your costs rise. Many freelancers review rates yearly.
What is a day rate?
A price for a full working day, often hourly rate × 7.5 to 8.
Do I charge for travel time?
Many freelancers bill travel in full or at a reduced rate; agree it upfront.
How many weeks a year should I assume?
Usually 44–48 after vacation, holidays and sick days.
Is a 10% margin enough?
It is a minimum buffer; many freelancers aim higher.
How do I track billable time?
Use a timer per client or project and review it weekly.
What hourly rate gives $100,000 a year as a freelancer?
With 25 billable hours a week for 46 weeks, 28% tax, $8,000 expenses and a 10% margin, about $140 an hour.
How do I calculate a freelance day rate?
Multiply your minimum hourly rate by the hours in a working day — usually 7.5 to 8.
Should I charge more for rush jobs?
Many freelancers add a rush premium (for example 25–50%) for short deadlines that require extra hours.
How do I price a fixed-fee project?
Estimate the hours, multiply by your hourly rate, then add a buffer for unknowns.
How many weeks should a freelancer plan to work?
Usually 44–48, leaving time for vacation, holidays, sickness and quiet periods.
Automate this with real tracked data.
StaffTiming records hours as they happen and turns them into payroll-ready timesheets, so you never re-type a calculation.