Run the calculator
Use this calculator to work backward from an income target, taxes, overhead, and billable hours to a more realistic hourly rate.
Freelance
Freelance Rate Calculator
Set a freelance rate floor before a client conversation forces you to guess.
Why freelancers undercharge
Many freelancers price from market anxiety instead of business math. A rate floor keeps tax, admin time, and operating costs from quietly eating the work.
Billable hours are the key input
Most self-employed people cannot bill every working hour. That is why billable hours per week matter more than total hours available.
Use it as a floor, not a ceiling
The result is the minimum sustainable rate for the inputs you entered. Specialist work, faster delivery, and stronger outcomes can justify more.
Good follow-up question
After getting the number, ask what decision this result should help with next: comparing offers, quoting work, setting a budget, building a fund, or speeding up debt payoff.
Frequently asked questions
Why is my rate higher than my old job hourly pay?
Freelance work usually has unpaid admin time, business costs, tax differences, and less consistency than employment.
Should I charge hourly or per project?
Many freelancers use an hourly floor internally and then package the price as a project quote.
What counts as overhead?
Software, subscriptions, equipment, insurance, marketing, accounting, and similar business costs.