Freelance Rate Calculator
Find the hourly and day rate you need to charge to reach your take-home income after tax, expenses and time off
Your Goals and Schedule
After tax and business costs
Software, equipment, insurance, health cover
Income plus self-employment tax on profit
Hours you can charge for, not hours worked
Vacation, holidays, sick days, gaps between projects
Buffer for slow months and unpaid invoices
Charge at least
$109.68 an hour
$877 a day (8 hours) · $126,133 of revenue a year over 1,150 billable hours
Day rate
$877.45
8 billable hours
Monthly revenue
$10,511
averaged over the year
Yearly revenue
$126,133
what you need to bill
Billable hours a year
1,150
25 hours × 46 weeks
Where each billed hour goes
Your $109.68 hourly rate, split up
Rate needed by billable hours
Fewer billable hours means a higher rate for the same income
Rate by Billable Hours
| Billable Hours a Week | Hours a Year | Hourly Rate | Day Rate |
|---|---|---|---|
| 15 | 690 | $182.80 | $1,462 |
| 20 | 920 | $137.10 | $1,097 |
| 25 (yours) | 1,150 | $109.68 | $877 |
| 30 | 1,380 | $91.40 | $731 |
| 35 | 1,610 | $78.34 | $627 |
| 40 | 1,840 | $68.55 | $548 |
Every row earns the same $80,000 take-home pay.
Why Freelance Rates Look High
Employees' salaries come with paid time off, an employer's share of payroll tax, equipment and benefits. As a freelancer you pay for all of that yourself, and only part of your working time is billable: admin, sales and unpaid gaps between projects take the rest. Dividing a salary by 2,080 hours usually undercharges by a wide margin.
The Formulas
Pre-tax income = take-home ÷ (1 − tax rate)
Revenue = (pre-tax income + expenses) × (1 + margin)
Hourly rate = revenue ÷ (hours a week × working weeks)
Day rate = hourly rate × 8. The tax rate is a single blended rate; check your own tax situation.
Setting Your Rate
- •Most freelancers bill 20 to 30 hours in a 40-hour week
- •Check what others in your field and region charge
- •Raise rates for new clients first
- •Consider project or value-based pricing for well-defined work
- •Set aside tax money from every payment you receive