Freelance Rate Calculator
Find the hourly rate you need to charge to meet your income goals as a freelancer.
What you want to actually take home
Hours you can bill clients (not admin)
Account for vacation, sick time
Software, equipment, office, etc.
% of income to save for retirement
Buffer for unexpected costs
Why Freelance Rates Are Higher Than W2 Salaries
Many new freelancers make the mistake of charging their old hourly rate. But freelancing comes with additional costs that employees don't pay.
Costs Freelancers Cover (That Employers Pay for W2 Workers)
- Self-employment tax: 15.3% (both employer and employee portions of FICA)
- Health insurance: $300-800+/month without employer subsidy
- Retirement: No employer 401k match
- Paid time off: Vacation = no income
- Equipment: Computer, software, office supplies
- Business expenses: Accounting, legal, insurance
Billable vs Non-Billable Hours
Not every hour of work is billable. You also spend time on:
- Marketing and finding new clients
- Administrative tasks
- Invoicing and accounting
- Learning and professional development
- Communication and meetings
Most freelancers can bill 60-75% of their working hours. Plan accordingly.
Freelance Rate Guidelines
A rough rule of thumb: Take your desired annual salary, divide by 1,000, and that's your minimum hourly rate.
Want to earn $80,000? Charge at least $80/hour.
This accounts for taxes, benefits, non-billable time, and provides a small buffer.
Tips for Setting Rates
- Research market rates for your skill and experience level
- Start higher—it's easier to lower rates than raise them
- Consider value-based pricing for projects
- Raise rates regularly (annually at minimum)
- Have different rates for different types of work