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Set a freelance hourly floor that can actually support income, tax, overhead, and the reality that not every hour is billable.
Freelance
Freelance Rate Calculator
Estimate a realistic freelance hourly rate from income target, taxes, overhead, and billable hours.
What this calculator helps answer
Set a freelance hourly floor that can actually support income, tax, overhead, and the reality that not every hour is billable.
When this estimate is useful
- Set a minimum rate before taking on new work.
- Check whether your current pricing can support a target income.
- Compare an hourly floor against a project quote.
How to use the number well
The calculator starts with the annual income you want to keep, then grosses that number up to account for taxes and overhead. It divides the required revenue by billable hours per year to estimate an hourly floor.
What can change the result
It does not model payment delays, bad debt, scope creep, seasonality, retirement contributions, or health insurance unless you include those in overhead or target income.
Good follow-up move
Once you have the number, open one related tool and one related guide. That usually turns a single estimate into a better decision.
Rate floor vs client-facing quote
Your hourly floor is not always the same as the number you quote a client. Short timelines, unclear scope, revision risk, meetings, and payment delays can justify a higher project price even when the floor stays the same.
Use this page to protect the business first, then use the project quote calculator to turn that floor into a cleaner fixed-fee number.
How this page estimates the result
MethodThe calculator starts with the annual income you want to keep, then grosses that number up to account for taxes and overhead. It divides the required revenue by billable hours per year to estimate an hourly floor.
Best useSet a freelance hourly floor that can actually support income, tax, overhead, and the reality that not every hour is billable.
LimitsIt does not model payment delays, bad debt, scope creep, seasonality, retirement contributions, or health insurance unless you include those in overhead or target income.
This page is for planning and education. For tax, payroll, or lender-specific decisions, verify details with the relevant provider.
Frequently asked questions
Why is the suggested rate higher than my old job rate?
Freelance pricing usually has to cover taxes, overhead, non-billable time, and downtime between projects.
Should I quote projects below the hourly floor?
Usually no. If a project is strategically valuable, make that discount deliberate rather than accidental.
What if I do not know my billable hours yet?
Start conservatively. It is safer to underestimate billable hours than to assume every week is full.