Freelance Rate Calculator
Work out the hourly rate you need to charge to hit your income goal.
Non-billable time: admin, marketing, learning
Recommended hourly rate
$64.48/hr
Yearly breakdown
Why freelance rates are higher than employee rates
A full-time employee earning $60K/year costs their employer around $80K (benefits, taxes, equipment). As a freelancer, you cover all these costs yourself. Plus:
- Self-employment tax (15.3% in the US)
- Health insurance and retirement (no employer match)
- 30-40% of your time is non-billable
- Vacation and sick days are unpaid
- Equipment, software, subscriptions
As a rule of thumb, a freelancer's hourly rate should be 2-3× the equivalent employee hourly wage.
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Frequently Asked Questions
How is the hourly rate calculated?
We work backwards from your target net income. We add business expenses, gross up for taxes, then divide by your actual billable hours per year.
What are billable hours?
Hours you spend on paid client work. Non-billable: admin, invoicing, marketing, learning, email. Most freelancers are 60-80% billable.
Why does the rate come out higher than expected?
As a freelancer you pay self-employment tax (15.3% in the US) plus income tax, cover your own health insurance, and lose ~30% to non-billable time. The rate reflects all this.
Should I include vacation?
Yes. If you take 4 weeks off per year, set 'vacation weeks' to 4. Your rate goes up to compensate.
Is it free?
Yes, completely free.