Freelance Rate Calculator
Calculate the minimum viable freelance hourly rate to match or exceed a target salaried income.
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How to use this calculator
- 1
Enter your target annual take-home income — what you want in your pocket after all costs.
- 2
Set your planned billable hours per week and the number of vacation weeks you want.
- 3
Add your annual business expenses, healthcare costs, and estimated tax rate.
- 4
Read your minimum viable hourly rate and the recommended rate with a 20% buffer for dry spells.
Frequently asked questions
Why is my freelance rate so much higher than my salary equivalent?
As a freelancer, you pay both sides of payroll tax (self-employment tax), cover your own healthcare, pay for business tools and marketing, and often have unpaid non-billable hours (admin, proposals, etc.). Your hourly rate must cover all of these costs, unlike an employee whose employer absorbs them.
What is a realistic billable hours count per week?
Most freelancers bill 20–30 hours per week. The remaining time goes to admin, prospecting, invoicing, learning, and unbillable client communication. New freelancers often overestimate billable hours and underprice themselves as a result.
Should I charge by the hour or by project?
Project-based pricing often yields higher effective rates because clients value outcomes, not time. Use the hourly rate from this calculator as a floor when estimating project prices — multiply by the expected hours and add a buffer for scope creep.
Freelance Hourly Rate Calculator
The hidden costs freelancers must account for
Employees receive benefits their employer funds: health insurance, retirement matching, payroll tax contributions, paid leave, and often equipment. A $60,000 salary costs an employer closer to $80,000–$90,000 in total. As a freelancer, you shoulder all these costs yourself, which is why a $60,000 take-home income may require billing $100,000+ in gross revenue.
The 20% buffer explained
Freelancing involves income variability — slow months, unpaid invoices, time spent on proposals that do not convert. Building a 20% buffer into your rate creates a financial cushion. If you consistently win more work than needed at the minimum rate, you can lower your rate to win more clients, invest in non-billable growth, or simply earn more.
Learn more from an authoritative source:
U.S. Bureau of Labor StatisticsSalary to Hourly Calculator
Convert annual salary to hourly rate, daily rate, weekly pay, and monthly pay — and back.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →