Freelance rate calculator

Stop undercharging. Calculate a rate that actually covers your taxes, health insurance, and those unpaid hours spent on "admin."

The Goals

Desired Annual Net Income ($) What you want to take home after taxes

The Realities

Annual Business Expenses ($) Software, hardware, office, etc.

Estimated Tax Rate (%)

The Time

Billable Hours per Week Be honest. 40 hours is impossible.

Weeks Worked per Year Subtract holidays and sick days.

Recommended Hourly Rate $71

$7,100 Gross Monthly

$85.2k Gross Yearly

The "Billable vs. Real" Gap

I genuinely believe the biggest mistake new freelancers make is thinking they can bill 40 hours a week. In reality, about 30% of your time is spent on "non-billable" work: emails, chasing invoices, learning new skills, and drinking coffee while staring at a blank screen. If you calculate your rate based on 40 hours, you will end up working 60 hours just to hit your income goal. **Be aggressive with your billable hour estimates.**

Should I include health insurance?

Yes! Everything you used to get as a "benefit" in a 9-5 must now be covered by your rate. Add your annual health insurance premium to your "Business Expenses" field for a more accurate calculation.

What is a standard tax rate?

It varies wildly by country and state. However, a safe rule of thumb for most freelancers is 25-30% to cover income tax and self-employment contributions. Always talk to an accountant, though.

Why is my rate so much higher than my old salary?

Because as a freelancer, you ARE the company. You pay for the office, the laptop, the electricity, and the time you spend finding clients. Your hourly rate isn't just your "wage"—it's the revenue of a small business.