Freelance Hourly
Rate Calculator
Stop guessing what to charge. Enter your desired income, business expenses, tax rate, and billable hours to find the minimum rate you need to charge — and what to aim for.
The billable hours trap
Most new freelancers assume they'll bill 40 hours a week. Experienced freelancers know the reality is 15–25 billable hours. The rest goes to client communication, proposals, admin, professional development, and finding new work. Use a conservative estimate — it's better to exceed your rate than fall short of your income target.
Why you need a profit margin buffer
Freelance income is irregular. A 15–25% profit buffer covers slow months, unexpected expenses, equipment replacement, and genuine business growth. Without it, every slow week directly attacks your personal finances. Think of it as a built-in business emergency fund that self-funds over time.
Self-employment tax explained
When you're self-employed, you pay both the employee and employer halves of Social Security and Medicare — that's 15.3% on the first ~$160k of net earnings alone, before any income tax. Add federal income tax (10–37%) and state tax (0–13%), and most US freelancers should budget 28–35% of gross revenue for taxes.
When to raise your rate
Raise your rate when: you're turning down work (demand exceeds supply of your time), you've been at the same rate for 12+ months, your expenses or tax situation has changed, or you've added significant new skills or credentials. Rate increases of 10–20% per year are common for in-demand freelancers in their first 5 years.
Find the minimum hourly rate you need to charge to meet your income goals as a freelancer or consultant.