Freelance Hourly Rate Calculator — Know What to Charge

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Most freelancers undercharge — not because they lack skills, but because they’ve never done the math. Setting a rate based on what competitors charge, or what “feels reasonable,” is a recipe for burnout and financial stress. The right freelance rate covers not just your take-home income, but also taxes, business expenses, health insurance, retirement, and unpaid time spent on admin.

This free freelance hourly rate calculator walks you through every cost in four simple sections. Enter your desired income, work schedule, monthly expenses, and estimated tax rate — and get an instant minimum hourly rate along with a full revenue breakdown. Use it as your floor, not your ceiling: once you know your number, you can charge with confidence and stop leaving money on the table.

How to Use This Calculator

Adjust the sliders and expense fields to match your situation. The result card updates in real time. Here’s what each section means:

• Income Goal: Your desired take-home pay after taxes and expenses.
• Work Schedule: How many weeks and billable hours you actually plan to work. Remember: as a freelancer, not all your working hours are billable.
• Business Expenses: Monthly costs that must come out of your revenue — software, insurance, equipment, etc.
• Taxes: Your effective rate. If you’re self-employed in the US, factor in the 15.3% self-employment tax on top of income tax.

The result is your minimum viable rate. Add a buffer of 15–20% for scope creep and rate negotiation room.

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Frequently Asked Questions

How do I calculate my freelance hourly rate?

The standard formula is: (Desired income + Annual expenses) ÷ (1 − Tax rate) ÷ Total billable hours. This gives you the gross hourly rate you need to charge to actually take home your target income after paying taxes and business costs. Most freelancers make the mistake of only factoring in income and forgetting expenses and unpaid work hours — which leads to chronic undercharging.

What expenses should I include in my freelance rate?

Include all recurring business costs: software subscriptions, health insurance (often $300–$600/month for self-employed), retirement savings, equipment depreciation, internet and phone, accounting or legal fees, and any coworking space costs. A common oversight is health insurance — in a traditional job this is employer-subsidized; as a freelancer, you pay 100%.

How much should a freelancer charge per hour?

Most freelancers in the US need to charge at least $40–$80/hour to cover a modest income plus expenses. Specialized skills (development, UX design, copywriting, consulting) often command $80–$200+/hour. Use this calculator with your real numbers to find your personal floor, then research market rates to see where you stand.

Should I charge hourly or per project?

Both have tradeoffs. Hourly is safer when scope is unclear. Per-project rewards efficiency. Most experienced freelancers shift toward project or retainer pricing over time. Use your hourly rate as the foundation: estimate hours × your rate, add a buffer, and quote a flat fee.

What’s the difference between my hourly rate and my equivalent salary?

A $100,000 freelance gross revenue is NOT equivalent to a $100,000 salary. As an employee, your employer covers payroll tax (~7.65%), health insurance, retirement matching, and paid time off. As a freelancer, you pay all of that yourself. Roughly speaking, a freelance gross of $100k is closer to a $65–70k salaried position.

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