Freelance Hourly Rate Calculator
Find the hourly and day rate you need to charge as a freelancer to reach your target take-home pay after taxes, expenses and time off.
How to calculate your freelance rate
Hourly rate = (Take-home pay ÷ (1 − tax rate) + Expenses) ÷ (Billable hours per week × Working weeks)
To take home $60,000 at a 25% tax rate you need $80,000 before tax. Add $6,000 of expenses for $86,000 of revenue. Working 46 weeks at 25 billable hours is 1,150 hours, so the minimum rate is $74.78 an hour, or about $374 a day.
Why freelance rates are higher than salaries
An employee earning $60,000 costs an employer far more than that: the employer pays half of Social Security and Medicare, health insurance, paid time off and equipment. As a freelancer you cover all of that yourself, and you cannot bill every hour you work. Admin, sales, invoicing and learning typically take 25–40% of your time, which is why 20–30 billable hours a week is realistic.
Choosing a tax rate
In the US, self-employed people pay 15.3% self-employment tax on 92.35% of net earnings (up to the Social Security wage base), plus federal and state income tax. A combined 25–35% is a common planning figure; use our self-employment tax calculator for a closer estimate, and set aside money for quarterly estimated payments.
The result is a floor, not a price. Check what clients pay for similar work and add a margin for slow months, retirement savings and business growth.
Frequently asked questions
How many billable hours does a freelancer work?
Most freelancers bill 20–30 hours a week. The rest goes to finding clients, admin and unpaid revisions.
How do I convert a salary to a freelance rate?
A quick rule is to divide the salary by 1,000 for a rough hourly rate: $80,000 suggests about $80 an hour. This calculator gives a more precise number.
Should I charge hourly or per project?
Hourly is safer for open-ended work. For well-defined projects, a fixed price based on your hourly rate times estimated hours plus a buffer often earns more.
Last reviewed October 2026. Results are estimates; check important decisions with a qualified professional.