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Freelance Rate Calculator

Calculate your ideal freelance rate

Recommended Rate

$95/hr

Minimum

$79/hr

Day Rate

$636

Annual

$109,000

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Rate Tiers

Minimum
$79/hr
Recommended
$95/hr
Premium
$119/hr
Day Rate

$636

Weekly Rev

$2224

Billable Hrs/yr

1372

Annual Target

$109,000

Rate Tier Comparison

Minimum$79/hr
Recommended (+20%)$95/hr
Premium (+50%)$119/hr

Expense Breakdown

Business Expenses$5,000
Self-Employment Tax$12,000
Health Insurance$6,000
Retirement$6,000

Rate Breakdown

Target Salary$80,000
+ Expenses & Taxes$29,000
= Annual Revenue$109,000
÷ Billable Hours1372 hrs
= Min Hourly Rate$79.45/hr

Frequently Asked Questions

Q

How do I calculate my freelance rate?

Add your target salary + taxes + expenses + benefits, then divide by billable hours. Formula: (Target Salary + Expenses) ÷ Billable Hours = Hourly Rate. Add 20% buffer for unexpected costs.

Q

What percentage of time is billable?

Most freelancers bill 60-75% of their time. The rest goes to: admin tasks, marketing, accounting, client communication, learning, and business development. 70% is a realistic estimate.

Q

What expenses should I include?

Include: self-employment tax (15.3%), health insurance, retirement savings, equipment, software, office space, internet, phone, professional development, accounting/legal, and marketing.

Q

How do I know if my rate is competitive?

Research market rates for your skill and location. Sites like Glassdoor, LinkedIn, and freelance platforms show typical rates. Your rate should reflect experience, specialization, and the value you provide.

Q

Should I charge hourly or project-based?

Project-based pricing can be more profitable as you become efficient. Start hourly to understand your time, then move to project rates. Value-based pricing (based on client ROI) is most profitable.

Q

How often should I raise my rates?

Review rates annually. Raise them as you gain experience, skills, and reputation. Many freelancers raise rates 10-20% yearly. Always raise rates for new clients first.

Example Calculations

1Web Developer Targeting $80K Take-Home

Inputs

Target Salary$80,000
Business Expenses/yr$5,000
Self-Employment Tax/yr$12,000
Health Insurance/yr$6,000
Retirement Savings/yr$6,000
Vacation Weeks3
Hours/Week40
Billable %70%

Result

Recommended Hourly Rate$95
Minimum Hourly Rate$79/hr
Premium Rate$119/hr
Day Rate (8 hrs)$636
Required Annual Revenue$109,000
Billable Hours/Year1,372

Total Expenses = $5,000 + $12,000 + $6,000 + $6,000 = $29,000. Required Revenue = $80,000 + $29,000 = $109,000. Working Weeks = 52 - 3 = 49. Billable Hours = 40 x 49 x 0.70 = 1,372. Minimum Rate = $109,000 / 1,372 = $79/hr. Recommended = $79 x 1.2 = $95/hr.

2Graphic Designer Targeting $60K Take-Home

Inputs

Target Salary$60,000
Business Expenses/yr$3,000
Self-Employment Tax/yr$9,000
Health Insurance/yr$5,000
Retirement Savings/yr$4,000
Vacation Weeks2
Hours/Week35
Billable %75%

Result

Recommended Hourly Rate$74
Minimum Hourly Rate$62/hr
Premium Rate$93/hr
Day Rate (8 hrs)$494
Required Annual Revenue$81,000
Billable Hours/Year1,313

Total Expenses = $3,000 + $9,000 + $5,000 + $4,000 = $21,000. Required Revenue = $60,000 + $21,000 = $81,000. Working Weeks = 52 - 2 = 50. Billable Hours = 35 x 50 x 0.75 = 1,312.5. Minimum Rate = $81,000 / 1,312.5 = $62/hr. Recommended = $62 x 1.2 = $74/hr.

Formulas Used

Minimum Hourly Rate

Minimum Rate = (Target Salary + Total Expenses) / Billable Hours per Year

The lowest hourly rate you can charge to cover your salary goal plus all business costs.

Where:

Target Salary= Your desired annual take-home pay
Total Expenses= Business Expenses + SE Tax + Health Insurance + Retirement
Billable Hours per Year= Hours/Week x Working Weeks x (Billable% / 100)

Recommended Rate

Recommended Rate = Minimum Rate x 1.2

A 20% buffer above the minimum to cover unexpected costs and scope creep.

Where:

Minimum Rate= The break-even hourly rate

Billable Hours per Year

Billable Hours = Hours/Week x (52 - Vacation Weeks) x (Billable% / 100)

The actual number of hours you can bill clients in a year.

Where:

Hours/Week= Total work hours per week
Vacation Weeks= Weeks of vacation per year
Billable%= Percentage of work time that is billable

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Last Updated: Feb 12, 2026

This calculator is provided for informational and educational purposes only. Results are estimates and should not be considered professional financial, medical, legal, or other advice. Always consult a qualified professional before making important decisions. UseCalcPro is not responsible for any actions taken based on calculator results.

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