Freelance Hourly Rate Calculator

An employer typically covers half of certain payroll taxes, provides paid time off, and often supplies equipment and software. A freelancer covers all of that out of a single hourly rate, including the full self-employment tax burden in places like the US, roughly 15.3% on net earnings for Social Security and Medicare, on top of regular income tax. That gap alone is why a freelance rate that matches an old salary number almost never actually matches the old take-home pay.

The other factor people consistently underestimate is unbillable time, hours spent on proposals, invoicing, marketing, bookkeeping, none of which a client pays for directly. Most full-time freelancers can only realistically bill somewhere between 20 and 25 hours in a 40-hour week, which means your rate has to cover the other 15 to 20 hours indirectly.

Enter your target annual take-home income, your estimated yearly business expenses, and the number of hours you realistically expect to bill each week. The calculator outputs the minimum hourly rate that actually covers all three.

If the resulting number looks uncomfortably high compared to what your current clients pay, that's useful information rather than a problem with the math, it usually means either your expenses need trimming, your billable efficiency needs improving, or it's time to start moving toward clients willing to pay professional rates. Everything calculates locally, so your income targets and expense figures stay private the whole time.