Freelance Rate Calculator

Start with your desired annual take-home income, add annual business expenses, then divide by (1 − your tax rate) to get the gross revenue you need. Divide that by your total billable hours per year (hours per week × working weeks). That gives your minimum hourly rate. Add a 10–20% profit margin buffer for unexpected costs and non-billable time.

Most freelancers bill 25–30 hours per week, not 40. The remaining 10–15 hours go to admin, marketing, invoicing, prospecting, and professional development. Planning for 40 billable hours is unrealistic and will leave you undercharging.

Include: software subscriptions, coworking space or home office costs, hardware depreciation, professional insurance, accounting fees, marketing spend, training, and any tools of your trade. Most freelancers underestimate expenses by 30–50%.

Both have a place. Hourly works well for ongoing or open-ended work. Project-based (fixed fee) is better when scope is well defined — and usually more profitable because you get faster as you gain experience. Use your hourly rate as the internal benchmark, then quote projects based on estimated hours plus a scope buffer.

It depends on your industry, experience, and location. As a benchmark: entry-level freelancers typically charge $25–$50/hr, mid-level $50–$100/hr, senior/specialist $100–$200+/hr. The most common mistake is basing your rate on employee salaries — freelancers have additional costs (taxes, insurance, no paid leave) that employees don't bear.

Employees receive benefits worth 25–40% of their salary: health insurance, pension contributions, paid holidays, sick leave, office space, equipment, and employer tax contributions. As a freelancer, you pay all of those yourself. A $50/hr employee costs their employer $65–$70/hr — so a $70/hr freelance rate for similar work is not overcharging, it's equivalent.