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Free Freelance Rate Calculator

Set your rates with confidence. Enter your income goal and expenses to get your ideal hourly rate, day rate, weekly rate, and project pricing. Built for freelancers, consultants, and independent contractors.

Rate Calculator

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$
Typical: 20-30 hours for freelancers
Includes holidays & sick days
Self-employment + income tax
Profit / buffer above costs
$0.00
Hourly Rate
$0.00
Hourly Rate
$0.00
Daily Rate (8 hours)
$0.00
Weekly Rate
$0.00
Monthly Revenue Needed
0 hrs
Break-Even Hours / Month
$0.00
Project Price (estimated)

How Your Rate Is Calculated

Desired Annual Income $0
Annual Business Expenses $0
Total Revenue Needed (before tax) $0
Tax Amount $0
Profit Margin Buffer $0
Total Billable Hours / Year 0
Resulting Hourly Rate $0.00
Most freelancers bill 20-30 hours per week. If you're new, consider starting with a lower rate and raising it as you build your portfolio and reputation.

How to Use

This calculator helps you determine what to charge as a freelancer by working backward from your financial goals. Here is how it works:

  1. Desired annual income — how much you want to take home after expenses and taxes.
  2. Business expenses — software, tools, office space, insurance, and other monthly costs.
  3. Billable hours per week — the hours you can realistically charge clients. Typically 20-30 hours.
  4. Vacation days — days off including holidays and sick leave.
  5. Tax rate — your combined self-employment tax plus income tax. Budget 25-35%.
  6. Profit margin — a buffer for unexpected costs, savings, and business growth.

Toggle to Project Rate mode to calculate a fixed price for a project based on your hourly rate.

Understanding the Formula

1. Annual Expenses = Monthly Expenses x 12
2. Total Revenue Need = Desired Income + Annual Expenses
3. Gross Revenue Target = Total Revenue Need / (1 - Tax Rate)
4. Final Target = Gross Revenue Target x (1 + Profit Margin)
5. Billable Hours/Year = (260 - Vacation Days) x (Billable Hours/Week / 5)
6. Hourly Rate = Final Target / Billable Hours/Year

Frequently Asked Questions

Freelancers spend about 60% of their working hours on billable client work. The rest goes to administrative tasks, marketing, proposals, accounting, and professional development. This utilization rate of 60-70% is considered healthy.
Unlike employees, freelancers pay 100% of their health insurance and retirement savings. A good rule is to add 20-30% to your desired income to account for these costs, or include health insurance premiums in your monthly expenses.
Hourly billing works well for ongoing work. Project-based pricing rewards efficiency. Many freelancers use a hybrid: calculate your hourly rate as a baseline, then quote fixed project prices based on estimated hours.
Review your rates at least once a year. Increase them when you gain experience or your expenses rise. A standard practice is to raise rates 5-10% annually. Never lower your rates — offer a smaller scope instead.
Gross revenue is everything you invoice clients. From that, you subtract business expenses, taxes, and profit margin before arriving at your take-home pay. This is why the required hourly rate is higher than you might expect.