Freelance Rate Calculator

A freelance rate should cover more than the work you do on a client call. It has to pay for taxes, unpaid admin time, software, insurance, marketing, sales calls, revision time, sick days, and the gaps between projects.

Open the target rate calculator

Simple formula

Required hourly rate = target annual take-home plus taxes, fees, and overhead divided by realistic annual billable hours.

What to enter first

Start with the income you want to keep each month. Then estimate billable hours per week and billable weeks per year. A common beginner mistake is using 40 hours and 52 weeks, which assumes every hour is paid and every week is full. That is rarely true for independent work.

InputWhy it matters
Billable hoursOnly include time you can realistically invoice to clients.
Tax reserveUse a conservative percentage until a local accountant gives a better estimate.
OverheadAdd tools, internet, hardware, training, bookkeeping, insurance, and marketing.

Best use case

Use this calculator before publishing rates on your website, accepting a retainer, joining a freelance marketplace, or turning a salary expectation into an independent contractor quote.

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