Freelance Rate Calculator
Estimate freelance hourly rate from income goals, expenses, tax buffer, and billable hours.
Freelance rate
Formula
Total Income Needed = Desired Income + Business Expenses
Tax Buffer = Total Income Needed * Tax Percentage
Adjusted Target = Total Income Needed + Tax Buffer
Billable Hours = (52 - Weeks Off) * Hours Per Week * Billable Percentage
Hourly Rate = Adjusted Target / Billable Hours Example
If you want $90,000 in income, expect $12,000 in expenses, use a 25% tax buffer, work 40 hours for 48 weeks, and bill 60% of your time, the minimum hourly rate is about $110.68.
Read how much freelancers should charge for a more complete pricing process.
Common mistakes
- Pricing only from desired salary and ignoring expenses.
- Assuming every working hour is billable.
- Forgetting time off, sales time, admin work, revisions, and taxes.
Related tools
Compare income assumptions with the Hourly to Salary Calculator and Salary to Hourly Calculator.
FAQ
How do you calculate a freelance hourly rate?
Add desired income and expenses, add a tax buffer, then divide by estimated billable hours.
What is billable percentage?
Billable percentage is the share of working time you can charge to clients after admin, sales, meetings, and unpaid work.
Why include business expenses?
Freelancers pay for tools, software, insurance, marketing, equipment, and other business costs that employees may not pay directly.
Does this calculate taxes exactly?
No. The tax buffer is only a planning estimate. Check actual tax rules with a qualified professional.
Disclaimer
This calculator is for general planning and educational use. It does not replace tax, legal, accounting, or financial advice.