Freelance Rate Calculator
Calculate the minimum hourly rate you need to charge to hit your income goals as a freelancer.
Your Income Goals
Hours you actually bill (not total working hours)
Subtract vacation and unpaid time
Enter your income goal to see your minimum rate
Frequently Asked Questions
SalaryTools Pro Research Team
Compensation ResearchOur research team specializes in compensation analysis and tax research, covering salary benchmarks, payroll tax policy, and compensation strategy across all US states.
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What This Calculator Does
This freelance rate calculator finds the minimum hourly rate you must charge to reach your after-tax income goal. It factors in self-employment taxes (~30%), the number of hours you can realistically bill each week, and how many weeks per year you plan to work.
How It Works
The formula accounts for taxes and non-billable time:
- Target income — the after-tax amount you want to take home annually
- Billable hours/week — hours you actually invoice clients (not total hours worked)
- Working weeks — exclude vacations, sick time, and dry spells between projects
Example Calculation
To take home $80,000/year billing 30 hours/week over 48 weeks:
- Gross revenue needed: $80,000 ÷ 0.7 = $114,286
- Total billable hours: 30 × 48 = 1,440
- Minimum rate: $114,286 ÷ 1,440 = $79.37/hr
Add a 20% buffer for negotiations and gaps: charge at least $95/hr.
Why This Matters
Underpricing is the most common mistake new freelancers make. Without accounting for taxes and non-billable time, a rate that looks competitive quickly leads to working harder for less than a comparable employee. This calculator establishes your true floor so you can price confidently and profitably.
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