FullCalculator

Freelance Rate Calculator

Calculate Freelance Hourly Rate

Determine your minimum freelance hourly rate

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Formula

Minimum Hourly Rate = (Desired Salary + Expenses + Insurance + Retirement) / (1 - Tax Rate) / (Billable Hours/Week × Weeks/Year).

Frequently Asked Questions

How do I calculate my freelance rate?
Hourly Rate = (Desired Salary + Expenses + Insurance + Retirement + Taxes) / Annual Billable Hours. For example, to net $80K with $10K expenses, 30% taxes, and 1,440 billable hours: ($80K + $10K) / 0.70 / 1,440 = ~$89/hr.
What is a billable hour?
A billable hour is time spent directly working on client projects that you can charge for. Non-billable time includes marketing, admin, invoicing, and professional development. Most freelancers are only billable 60-75% of their working hours.
Should I charge hourly or project-based?
Both have merit. Hourly rates are simpler and protect against scope creep. Project-based pricing rewards efficiency and can earn more as you get faster. Many experienced freelancers use value-based pricing tied to the outcome rather than hours worked.

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