Salary & Income
Freelance Rate Calculator
Find the minimum hourly rate you need to charge to achieve your desired take-home income after taxes, business expenses, and realistic billable hours.
After-tax take-home you want to earn.
Software, equipment, insurance, professional fees, etc.
US: 15.3% (Social Security + Medicare).
Federal + state combined effective rate.
Realistic billable hours (not total working hours).
🔒 All calculations happen instantly in your browser. No data is sent to any server.
How the calculation works
Required Annual Gross = (Desired Net Income + Business Expenses) ÷ (1 − Total Tax Rate)
Hourly Rate = Required Annual Gross ÷ Billable Hours per Year
Day Rate = Hourly Rate × 8
Example: Want $80k net · $5k expenses · 37.3% total tax · 1,200 billable hours
Gross needed = ($80k + $5k) ÷ 0.627 = $135,565 → Hourly = $135,565 ÷ 1,200 = ~$113/hr
Frequently Asked Questions
- Billable hours are the hours clients actually pay for. Most freelancers bill 60–75% of their working hours — the rest goes to admin, marketing, unpaid revisions, and professional development. 1,000–1,400 hours/year is realistic for a full-time freelancer.
- Employees split FICA taxes with their employer — each paying 7.65%. Self-employed people pay both halves: 12.4% Social Security (up to the wage base) + 2.9% Medicare = 15.3% total. You can deduct half of SE tax when calculating income tax.
- Add 15–25% to your minimum rate. Freelancing involves unpaid admin time, late-paying clients, project gaps, unexpected expenses, and dry spells. The minimum rate is break-even; your actual rate should build in profit and stability.
- Project-based pricing is usually more profitable — it rewards efficiency and aligns with client value. Use your hourly rate as a floor when estimating project costs: estimate hours × rate, then add a scope buffer of 20–30%.
- Deductible freelance expenses: software subscriptions, home office (proportional rent/utilities), professional equipment, health insurance premiums, retirement contributions (SEP-IRA/solo 401k), professional development, and accountant fees.
- To compare fairly, add 25–40% to any salaried offer to account for self-employment taxes, no employer benefits (health insurance, retirement match, paid leave), and income volatility. A $100k salary is roughly equivalent to $125–140k freelance gross.