Freelance Hourly Rate Calculator
Stop guessing at your rates. Enter your income goal, business expenses, and realistic billable hours to find the hourly rate that actually sustains your freelance business.
Software, insurance, hardware, coworking, etc.
Hours you actually bill clients — not admin time.
Your rates
How the calculation works
The math is simple but most freelancers skip it. First, add your desired take-home pay to your annual business expenses — that is the total revenue your business must bring in. Next, figure out your real billable capacity: your billable hours per week multiplied by the weeks you actually work (52 minus your weeks off). Divide the revenue you need by those hours, and you get your break-even hourly rate. The calculator then adds a 15% buffer, because no freelancer bills every working hour — there is always admin, marketing, and downtime.
Tips for setting freelance rates
Be honest about billable hours. A 40-hour work week usually means 20–30 billable hours once you subtract emails, proposals, invoicing, and learning. Underestimating this is the number one reason freelancers undercharge. Remember that your rate must also cover things a salary would: health insurance, retirement savings, and self-employment tax, which is roughly 15% on top of income tax in the US. Finally, treat the recommended rate as a floor, not a ceiling — specialists with proven results routinely charge two to three times their break-even rate, and raising rates on new clients is the fastest way to grow freelance income.
Frequently asked questions
What counts as a business expense?
Anything the business pays for: software subscriptions, hardware, internet, phone, insurance, accounting, coworking space, marketing, and professional development. Add them up annually for the most accurate rate.
Why is there a 15% buffer on the recommended rate?
Because no one bills 100% of their working time. The buffer covers non-billable work like admin and marketing, plus a small profit margin so the business can grow instead of just surviving.
Should I charge hourly or per project?
Use your hourly rate as the foundation either way. For fixed-price projects, estimate the hours, multiply by your rate, and quote that — you get the predictability clients like without working for less than your time is worth.
How often should I raise my rates?
Most successful freelancers review rates at least once a year and raise them for new clients whenever demand is steady. Existing clients can be moved up gradually with 30 days notice.