Freelance Hourly Rate Calculator
Stop guessing. Calculate exactly what you need to charge to hit your income goals, cover expenses, and pay taxes.
Your Numbers
Enter your targets and estimated costs.
This is what you want to take home before taxes but after expenses.
Software, insurance, co-working, etc.
Self-employment tax is usually ~15.3% + income tax.
Be realistic. 20-30 hours is common.
Vacation, sick days, holidays.
Why calculate your freelance hourly rate?
As a freelancer or independent contractor, determining your hourly rate is one of the most critical business decisions you'll make. Charge too little, and you'll burnout while barely covering expenses. Charge too much without justification, and you might struggle to land clients.
Our Profit-First Hourly Rate Calculator works differently than simple division. It starts with your personal financial goals (your desired net income) and works backward, factoring in the reality of running a business: self-employment taxes, overhead expenses like software and insurance, and the unbillable time you spend on marketing and admin work.
How to use this calculator
- Desired Annual Income: This is your "take-home" pay goal. What do you need to support your lifestyle?
- Monthly Expenses: Don't forget subscriptions, internet, co-working spaces, and health insurance.
- Billable Hours: Most freelancers can only bill 20-30 hours a week. The rest is admin, sales, and coffee refills.
- Taxes: As a contractor, you are responsible for the full FICA tax (~15.3%) plus income tax. Setting aside 25-30% is a safe rule of thumb.