Freelancer Hourly Rate Calculator | Freelance Pricing Calculator

What is Freelancer Hourly Rate Calculator | Freelance Pricing Calculator?

A freelancer hourly rate calculator determines what to charge clients based on desired annual income, billable hours (typically 50-60% of total work time), business expenses, taxes, and benefits you must fund yourself. Accounts for reality that freelancers work far more hours than they bill (marketing, admin, proposals, breaks between clients), pay self-employment tax (15.3% Social Security and Medicare), and have no paid vacation, health insurance, or retirement contributions. Essential for freelancers, consultants, contractors, and gig workers to price services profitably rather than inadvertently earning less than employees while working longer hours.

Key Benefits & Use Cases

Avoid severely undercharging by understanding your true costs—many new freelancers charge employee-equivalent rates not realizing they must cover benefits, taxes, unbillable hours, and business expenses. Ensure sustainable income by setting rates that cover slow periods, client gaps, and unbillable marketing time. Calculate rates that provide desired lifestyle after all expenses and taxes—aiming for $60K annual income requires much higher billing rates than $60K employee salary due to additional costs. Compare freelancing profitability to employment by seeing true take-home pay after expenses. Justify rates to clients confidently knowing your pricing is based on solid financial analysis. Used by freelance writers, designers, developers, consultants, and all independent professionals to establish profitable pricing without overcharging or undervaluing services.

How to Use This Calculator

Enter your desired annual income (take-home after taxes and expenses), estimated billable hours per week (be conservative—20-25 hours is realistic for 40-hour work weeks once marketing, admin, and gaps are accounted for), and weeks worked per year (factor in vacation, sick days, holidays—45-48 weeks typical). Add monthly business expenses (software, insurance, marketing, workspace) and estimated tax rate (30-35% for self-employment taxes plus income taxes). Results show required hourly rate to achieve income goals. Most freelancers need rates 2-3x what they would earn per hour as employees once all factors are considered. For project-based work, multiply hourly rate by estimated hours. Review and adjust rates annually as expenses and desired income change.