Stop undercharging. This free freelance rate calculator works backward from your target take-home income — adding expenses and taxes over your real billable hours — to the hourly rate you should charge.
Your targets
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$
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Hourly rate to charge
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Enter your income target and hours
Required revenue / yr
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Billable hours / yr
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Day rate (8 hrs)
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Tax set-aside / yr
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Results update automatically as you type. Bill only a portion of your week — admin and sales aren’t billable.
Use this free freelance rate calculator to work out the hourly rate you need to charge. Enter your target take-home income, business costs and billable hours to find a rate that actually pays the bills.
What this freelance rate calculator shows you
A freelance rate calculator turns the income you want into the hourly rate you need to charge. It works backward from your target take-home pay, adds your business expenses and a tax set-aside, then divides by your billable hours to give your hourly and day rate.
Most new freelancers undercharge by dividing a salary by 2,080 hours — but that ignores taxes, expenses and the large share of the week that isn’t billable.
To take home $70,000 with $8,000 of expenses, a 25% tax set-aside, and 25 billable hours a week for 46 weeks, you’d need to charge about $88 an hour — generating roughly $101,000 in revenue across 1,150 billable hours.
How to use the freelance rate calculator
Enter your target take-home income. What you want to keep after tax and costs.
Add your yearly business expenses. Software, equipment, insurance, fees.
Set realistic billable hours and working weeks. Leave room for admin, sales and time off.
Add a tax set-aside (optional). Freelancers cover their own taxes.
Read your rate. Your hourly and day rate update instantly.
Why your billable hours are lower than you think
Not every hour is billable. Marketing, admin, invoicing and learning eat into the week.
You don’t work 52 weeks. Subtract holidays, sick days and gaps between clients.
You pay both halves of payroll tax as a self-employed worker.
Expenses come out of revenue, not your take-home.
Freelance rate terms glossary
Term
What it means
Billable hours
Hours you can actually charge a client for.
Take-home income
What you keep after expenses and tax.
Day rate
Your hourly rate × a working day (often 8 hours).
Utilization
The share of your time that is billable.
Freelance Rate FAQ
How do I calculate my freelance hourly rate?
Work backward from your goals: take your target take-home income, divide by (1 − your tax rate), add your business expenses, then divide by your billable hours for the year. The result is the rate you need to charge.
Why can't I just divide a salary by 2,080 hours?
Because that ignores self-employment taxes, business expenses, unpaid time off, and the large share of your week spent on admin and sales rather than billable work. Freelance rates need to be meaningfully higher than an equivalent salaried hourly wage.
How many billable hours should I assume?
Far fewer than 40 a week. Many freelancers bill 20–30 hours, with the rest going to marketing, admin and learning. Working weeks are also usually 45–48, not 52, once you account for holidays and gaps.
How much should I set aside for taxes?
It varies by country and income, but many freelancers reserve 25–30% of profit for taxes, since they pay both the employer and employee share of payroll taxes. Check your local rules or a tax professional.
Should I charge hourly or a project rate?
Either works — many freelancers use this hourly figure as a baseline, then quote project rates by estimating the hours involved. Project pricing rewards efficiency and is often preferred by clients.
Is the freelance rate calculator free to use?
Yes, this freelance rate calculator is completely free, needs no sign-up, and gives instant results directly in your browser.
