Freelance Rate Calculator: How to Figure Out What to Charge

Most freelancers undercharge. They take their last salary, divide by 2,080 (work hours in a year), and use that as their hourly rate. That math is wrong and it's costing you money.

Why Your Rate Should Be Higher Than You Think

As a freelancer, you pay for everything your employer used to cover:

• Self-employment tax (15.3% in the US)
• Health insurance ($400-800/month)
• Retirement savings (no employer match)
• Software, equipment, office space
• Vacation and sick days (you don't get paid for those)
• Time spent on admin, invoicing, marketing (not billable)

A $50/hour employee costs their employer roughly $70-80/hour in total compensation. As a freelancer, you need to cover all of that yourself.

Calculate Your Rate

The Freelance Rate Calculator factors in your desired annual income, business expenses, taxes, and realistic billable hours to give you an hourly rate that actually works.

The Billable Hours Trap

You will not bill 40 hours per week. Between marketing, admin, meetings, and downtime between projects, most freelancers bill 25-30 hours per week. That's 1,300-1,560 billable hours per year, not 2,080. This alone means your hourly rate needs to be 33-60% higher than a comparable salary.

The Confidence Problem

If saying your rate out loud makes you uncomfortable, it's probably the right rate. Clients who balk at fair rates aren't clients you want. The clients who pay well expect professionalism and are easier to work with. Race-to-the-bottom pricing attracts race-to-the-bottom clients.