Freelance Rate Calculator

About this calculator

Many freelancers undercharge because they only factor in their desired salary — ignoring overhead, taxes, and the reality that a 40-hour work week isn't 40 billable hours. This calculator starts from your actual take-home goal, adds overhead and a tax buffer to arrive at the gross revenue you need, then divides by your true available billable hours to find the minimum viable rate. It also shows a scenario table so you can see exactly how many hours per week you'd need to bill at higher rates — helping you balance rate vs. workload.

Field explanations

Desired annual take-home pay

The net amount you want to pay yourself after taxes and business expenses — your personal "salary." This is your income goal, not your gross revenue target.

Annual business overhead

All business operating costs: software subscriptions, hardware, professional liability insurance, accounting fees, marketing, co-working space, and any other recurring business expenses. These must be covered by your revenue before you pay yourself.

Effective tax rate (SE + income)

Your estimated combined tax rate including self-employment tax (15.3% on net SE income) and federal/state income tax. A common starting point for US freelancers is 25–35%. The calculator grosses up your revenue target so this percentage is set aside before you take your salary.

Vacation & sick days per year

Days you plan not to work. Subtracted from 260 standard working days to find your actual working weeks. More time off means fewer billable hours available — and a higher required rate.

Non-billable admin hours per week

Hours spent on work you can't bill to clients: sales calls, writing proposals, invoicing, bookkeeping, marketing, and professional development. Subtracting these from 40 hours/week gives your true billable capacity.