Free tool
Freelance hourly rate calculator
The rate that actually pays your salary.
Your result is an estimate based on the answers you enter. It is not filed or stored anywhere.
Method
How this calculator works
The classic freelancer mistake is dividing a target salary by 2,000 hours. You can't bill 40 hours a week — admin, marketing, and empty pipeline eat 30–50% of working time — and your rate must also cover business overhead and the self-employment tax an employer would otherwise pay.
This calculator takes your target take-home income, adds annual overhead, grosses up for your combined tax rate, and divides by realistic billable hours (weekly hours × working weeks × a utilization percentage that defaults to 60%). The result is a floor, not a ceiling — market rates and specialization set the top.
Estimates, not advice
Every figure this tool produces is a planning estimate built from the numbers you enter and simplified assumptions documented above. It is educational content, not individualized financial, legal, or tax advice. Rates, limits, and thresholds change — annual constants are reviewed each January, and you should confirm anything decision-critical against primary sources or a professional.
Questions
FAQ
Is 60% utilization realistic?
For established freelancers, 60–75% of scheduled hours end up billable. In the first year it's often below 50%. Set it honestly; overestimating utilization is how rates end up too low.
Should I quote this rate to clients?
It's your minimum viable rate. Quote based on market and value; use this number to know which projects to walk away from.
What tax rate should I enter?
Your combined federal + SE + state estimate — the set-aside calculator gives you that percentage.