💼 Freelance Hourly Rate Calculator
Find the hourly rate that actually pays the bills — from your target take-home, business expenses, billable hours, working weeks, and a buffer for tax and profit. Get a recommended hourly and day rate you can quote with confidence.
💼 Rate you should charge
Charge on billable hours only — the hours you actually invoice are always fewer than the hours you work, once you subtract admin, sales, and downtime. The buffer covers self-employment tax, non-billable time, and profit. Estimates for planning, not tax or financial advice.
Price your work so it sustains you
The most common freelance mistake is dividing a desired salary by 2,080 hours and quoting that — ignoring expenses, unpaid non-billable time, and self-employment tax. Working backwards from the income you want, through realistic billable hours and a buffer, produces a rate that actually leaves you whole at year-end.
Once you have your rate, the day-rate figure makes fixed-price and retainer quotes easier to frame. Pair it with the Salary to Hourly Calculator to compare a freelance rate against an equivalent salaried role.
❓ Frequently Asked Questions
How do I calculate my freelance hourly rate?
Add the income you want to take home to your annual business expenses, then divide by the hours you can actually bill in a year: base rate = (target take-home + expenses) ÷ (billable hours per week × working weeks). Finally gross the rate up for a buffer to cover tax and profit. For example $60,000 take-home plus $12,000 expenses over 1,440 billable hours is a $50 base rate, which grosses up to about $71 an hour at a 30% buffer.
What's the difference between billable and worked hours?
Billable hours are the ones you invoice a client for; worked hours also include admin, marketing, proposals, invoicing, and learning — none of which a client pays for directly. A full-time freelancer working 40 hours a week might only bill 25–30 of them. Always base your rate on billable hours, or you'll price yourself far too low.
Why gross the rate up with a buffer?
As a freelancer you cover costs an employer would otherwise absorb: self-employment tax, health insurance, unpaid time off, slow months, and software — plus you want a profit margin. The buffer divides those out of your revenue (rate = base ÷ (1 − buffer%)), so the number you charge still leaves your target after they're paid. A 25–35% buffer is a common starting point.
Is the recommended rate a guarantee?
No — it's an estimate for planning. Real rates also depend on your market, niche, experience, and what clients will bear, and your actual tax rate varies by location and structure. Use this as a floor to negotiate up from, and confirm your tax and expense assumptions with a qualified accountant. It is not tax or financial advice.