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Freelance Rate Calculator
Charging too little is the most common freelancing mistake. Start from the income you want, add your costs, taxes, time off and marketplace fees, and see the minimum hourly and day rate that gets you there.
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Freelance Rate Calculator
Minimum hourly rate-
Day rate (8 hrs)-
Billable hours / year-
Revenue needed-
Paid in fees-
Equivalent W-2 salary-
Rate = (income goal + costs) ÷ (1 − tax set-aside) ÷ (1 − platform fee) ÷ billable hours. "Equivalent W-2 salary" is a rough comparison that backs out the employer share of payroll tax and typical benefits (about 25%).
How the Freelance Rate Calculator works
We add your take-home goal and business costs, gross that up for your tax set-aside, then gross it up again for the platform fee, because fees come off the top of what clients pay.
Billable hours are your weekly billable hours times the weeks you actually work. Most freelancers bill 20–30 hours a week; the rest goes to admin, sales and learning.
The result is your floor. Price above it when you can show results.
Tips from our recruiters
- Do not count every working hour as billable; plan for 60–75% at best.
- Marketplace fees vary widely, so compare platforms and factor the fee into your rate.
- Raise rates for new clients first, then for existing ones with notice.
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your desired take-home pay and business costs, adjust for taxes and platform fees, and divide by the hours you can realistically bill in a year. The calculator does this for you.
Why should freelancers charge more than employees earn per hour?
Freelancers pay both halves of payroll tax, fund their own benefits and time off, cover equipment and software, and spend unbilled time finding work.
How many billable hours should a freelancer plan for?
Most freelancers bill 20 to 30 hours in a 40-hour week. The rest goes to marketing, proposals, invoicing and skill-building.
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