Freelance Rate Calculator
Calculate the ideal freelance hourly or project rate based on your desired income, expenses, billable hours, and profit margin.
Many freelancers underprice their services because they only consider salary — forgetting taxes, benefits, unpaid time, and overhead. This calculator helps you set a rate that actually pays the bills.
The true cost of being a freelancer
- Self-employment tax: 15.3% (you pay both employer and employee share)
- Health insurance: often $300–$700/month without employer subsidy
- Unpaid time: vacations, sick days, business development, admin work
- Overhead: software, equipment, office, professional development
Billable hours reality check
A full-time employee works ~2,080 hours/year. A freelancer billing 40 hours/week still has non-billable admin time, client acquisition, and gaps between projects. Realistically, most freelancers bill 60–75% of working hours. Use 1,200–1,500 billable hours as a conservative estimate.
How to raise your rates
- Niche specialization — command premium for scarce expertise
- Document ROI — show clients how your work generates revenue
- Raise rates for new clients first, then phase in for existing ones
- Package services instead of hourly to shift from time to value