Freelancer Rate Calculator
Calculate your minimum hourly rate, estimate annual income, or create a project quote.
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Setting a freelance rate blindly is one of the most common mistakes independent workers make. Too low and you're subsidising your clients; too high and you lose projects. This calculator works backwards from what you actually need to take home — accounting for taxes, business expenses, unpaid time, and vacation — to give you the minimum viable hourly rate. It also converts any rate into projected annual income.
Example Calculation
Monthly expenses: $500
Rate Formula
Gross needed = (Desired net ÷ (1 − tax rate)) + annual expenses × (1 + buffer) Billable hours = (Work days − vacation − sick − holidays) × hours per day Hourly rate = Gross needed ÷ Billable hours
Why Your Rate Must Cover More Than Salary
As a freelancer, you pay both halves of payroll tax, cover your own benefits, absorb slow periods, and spend unpaid hours on admin and sales. A $73/hr freelance rate is not equivalent to a $73/hr employee rate — the employee equivalent is closer to $45–50/hr once benefits are factored in. This calculator makes that gap visible so you can price confidently.
Frequently Asked Questions
Should I charge hourly or per project?
Project rates protect you from scope creep and reward efficiency. Hourly rates are safer when requirements are vague. Use this calculator to anchor any project quote.
How do I handle a 0% billable rate month?
Build a 3–6 month cash reserve. Treat non-billable months as part of your annual cost model, not exceptions.
What tax rate should I enter?
Use your effective combined rate: federal income tax + self-employment tax (15.3% in the US) + state tax. 25–35% is typical for US freelancers.
Is the buffer percentage necessary?
Yes. Clients pay late, projects get cancelled, and you'll lose some pitches. A 10–20% buffer prevents you from ending the year short.