How do I calculate my freelance hourly rate?

Divide your target annual income (plus taxes and expenses) by your expected billable hours. Account for time spent on non-billable work like marketing and admin.

Freelance Hourly Rate Calculator

Calculate the hourly rate you need to meet your income goals

Target Annual Take-Home Income

How much you want to take home after taxes

Weeks per Year

Account for vacation

Hours per Week

Total work hours

Frequently Asked Questions

Why is my hourly rate so high?

As a freelancer, you pay both employer and employee portions of taxes (15.3% SE tax), plus you have business expenses. You also can't bill 100% of your time.

What is utilization rate?

Utilization rate is the percentage of your work time that's actually billable. Industry average is 60-80%. Non-billable time includes admin, marketing, and learning.

Should I charge more than the minimum?

Yes! The minimum rate is the break-even point. Add a buffer for slow months, retirement savings, and profit margin. We recommend at least 20% above minimum.

This calculator provides estimates for informational purposes only. Consult a qualified tax professional for personalized advice.