Freelance Rate Calculator - Hourly Rate, Pricing & Income Estimator
Calculate your ideal freelance hourly rate based on expenses, taxes, desired income, and business goals
Input Details
What you want to earn annually
Business Costs (Optional)
Determine hourly, daily, project, and monthly rates for your freelance business. Considers desired income, business expenses, taxes, profit margins, and working hours to provide accurate rate recommendations.
How to Use Freelance Rate Calculator
Set Your Financial Goals
Enter your desired annual salary. Research market rates and add 20-40% to account for health insurance, retirement contributions, and other benefits you would receive as an employee.
Define Your Working Schedule
Input planned working hours per week and weeks per year. Remember that billable hours are typically 60-80% of total work time due to administrative tasks, marketing, and business development. Account for vacation and sick time.
Calculate Business Expenses
Add all annual business expenses including equipment, software subscriptions, office costs, marketing, professional development, insurance, and professional services.
Set Tax and Profit Margins
Enter your estimated tax rate (typically 25-35% for freelancers, including income tax plus self-employment tax) and desired profit margin (10-30%). Profit margin provides a buffer for business growth and unexpected expenses.
Calculator Features
Comprehensive Rate Calculation
Calculate hourly, daily, project, and monthly rates based on your financial goals and business costs
Multiple Rate Strategies
Get minimum, recommended, competitive, and premium rate options for different market positioning
Business Expense Tracking
Factor in all business expenses including equipment, software, insurance, and professional services
Profit Margin Analysis
Include profit margins for business growth, savings, and unexpected expense buffers
Realistic Working Hours
Account for vacation time, sick days, and non-billable hours
Tax Considerations
Include self-employment taxes and income taxes in your rate calculations
Common Calculations & Examples
Example 1: Web Developer Rate Calculation
Problem: A web developer wants to earn $80,000 annually with business expenses
Steps:
- Enter desired annual salary: $80,000
- Set working hours: 40 hours/week, 50 weeks/year
- Add business expenses: $15,000 (including insurance and retirement)
- Set tax rate: 25%
- Set profit margin: 20%
- Click Calculate
Explanation: For a web developer targeting $80,000 annually with $15,000 in business costs, the calculator determines a recommended hourly rate of $67.50. This accounts for 1,920 billable hours annually, 25% tax rate, and 20% profit margin.
Example 2: Graphic Designer Starting Out
Problem: A new graphic designer needs to calculate competitive rates
Steps:
- Enter desired annual salary: $50,000
- Set working hours: 35 hours/week, 48 weeks/year
- Add business expenses: $9,000
- Set tax rate: 30%
- Set profit margin: 15%
- Click Calculate
Explanation: For a graphic designer starting their freelance career with a $50,000 income goal, the competitive rate of $45.20 provides market entry pricing while maintaining profitability.