The “Real” Freelance Hourly Rate Calculator
Most people simply guess when setting their prices, but using a proper freelance hourly rate calculator is the only way to ensure you are actually profitable. When I first started, I took my desired salary and divided it by 2,080 (the standard 40-hour corporate work week).
This is a fast track to burnout.
Why? Because as a freelancer, you don’t get paid for lunch breaks, invoicing, marketing, or sick days. If you want to earn a steady income, your hourly rate must cover your “non-billable” time, your taxes, and your overhead.
Use the tool below to find the exact rate you need to charge to hit your income goals.
💸 Freelance Rate Calculator
Your Minimum Hourly Rate:
How this Freelance Hourly Rate Calculator works
To find your “True Rate,” this tool accounts for three critical factors that most simple math ignores. If you want to trust your pricing, you need to input the following data:
- Billable Efficiency: You cannot bill 40 hours a week. The average successful freelancer only bills between 20 and 25 hours a week. The rest is admin work.
- The Tax Anchor: As a 1099 contractor or business owner, you are responsible for the full tax burden.
- Time Off: If you don’t factor in vacation and sick days, you are essentially paying to take time off.
Why you need to stop undercharging
Many professionals are afraid to raise their rates. However, when you use a freelance hourly rate calculator, you are using logic, not emotion. If your goal is to net $100,000, and your calculator says you need to charge $115/hr, that is not “expensive”—that is simply the math required to run your business.
Frequently Asked Questions
What is a good billable hours goal? Aim for 60% of your total working time. If you work 40 hours, try to bill 24.
How much should I set aside for taxes? A safe rule of thumb is 25–30% of your gross income, though this varies by country.