Step 1
Enter your desired annual salary
Start with the take-home pay you want after taxes and business costs. This is the net income target the calculator works backward from.
Free Pricing Tool
Freelance Rate Calculator
A freelance rate calculator is a tool that determines your ideal hourly rate by factoring in desired salary, business expenses, billable hours, and profit margin. Use this free calculator to compare scenarios and find the rate that covers your costs and growth goals.
Compare multiple scenariosInstant rate breakdownWorks entirely in your browser
Built for
Freelancers setting hourly or project rates
Consultants pricing retainer engagements
Agencies benchmarking team billing rates
Your hourly rate
$91.04
Updates live as you adjust salary, expenses, hours, and margin below.
How To
How to calculate your freelance rate
Use the calculator below to enter your numbers, compare scenarios, and find the hourly rate that works for you.
Step 2
Add your annual business expenses
Include insurance, software, equipment, taxes, and any other costs you cover as a freelancer that an employer would normally handle.
Step 3
Set your billable hours and weeks
Enter how many hours per week you expect to bill and how many weeks per year you plan to work. The calculator multiplies these to find your total annual billable hours.
Step 4
Apply a profit margin and compare scenarios
Add a profit margin to cover growth and uncertainty. Create multiple scenarios to see how changes in salary, expenses, or hours affect your hourly rate.
Calculator
Build your rate
Rate breakdown
Hourly rate
$91.04
Annual revenue
$109,250.00
Monthly income
$9,104.17
Total billable hours
1,200
Profit buffer
$14,250.00
Effective take-home
$94,250.00
FAQ
Frequently asked questions
How do I calculate my freelance hourly rate?
Add your desired annual salary and yearly business expenses, then divide by the number of billable hours you expect to work per year. Apply a profit margin on top to cover growth, savings, and unexpected costs. This calculator automates the math so you can compare scenarios side by side.
What expenses should I include in the calculation?
Include costs like health insurance, software subscriptions, accounting fees, co-working space, equipment, professional development, retirement contributions, and self-employment taxes. These are business expenses that a traditional employer would cover for you.
How many billable hours should I plan for?
Most freelancers bill 20 to 30 hours per week. The rest of your working time goes to admin, marketing, invoicing, and business development. A common starting point is 25 billable hours per week across 48 working weeks per year.
What profit margin should I add to my freelance rate?
A 10% to 20% profit margin is typical. This buffer covers reinvestment in your business, an emergency fund, uneven income months, and long-term savings. Experienced consultants with strong demand often use a higher margin.
How is the freelance rate different from a salaried equivalent?
As a freelancer you pay your own taxes, benefits, equipment, and downtime between projects. A common guideline is that your hourly rate should be roughly 1.5 to 2 times what a salaried employee earns per hour for similar work.
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