IncomeChecker.com

Freelance Rate Calculator

Work out the hourly rate you need to charge. Enter the take-home pay you want, your yearly business expenses, a tax rate, and how many hours you can actually bill, and get a rate that covers it.

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Vacation, holidays, and sick time

Hourly rate needed
$90.21
Revenue needed per year
$106,000
Billable hours per year
1,175

How the rate is calculated

  • Billable hours = hours per week × (52 − weeks off)
  • Revenue needed = expenses + take-home ÷ (1 − tax rate)
  • Hourly rate = revenue needed ÷ billable hours

Example. To take home $75,000 with $6,000 of expenses and a 25% tax rate, you need $106,000 of revenue. At 25 billable hours a week for 47 weeks, that is 1,175 hours, so the rate is $90.21 an hour.

Things to check

  • Most freelancers bill far fewer hours than they work. Admin, sales, and gaps between projects are unpaid, so 20 to 30 billable hours a week is realistic.
  • The tax rate is a flat estimate on profit. It does not model brackets, and self-employment tax is not separate here, so use a rate that includes it.
  • Treat the result as a floor. Add room for software, insurance, retirement, and a slow quarter.

Frequently asked questions

How do I calculate my freelance hourly rate?

Work out the revenue you need to cover your take-home pay, expenses, and taxes, then divide it by the hours you can bill in a year. This calculator does that.

How many billable hours should I assume?

Many freelancers land between 20 and 30 billable hours a week. Hours spent on admin, marketing, and finding work are not billable.

Should I charge hourly or by project?

Use the hourly figure as a minimum. When a project has a clear scope, pricing by the project lets you earn more if you work faster, as long as you keep the hourly floor in mind.

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Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.