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Freelance Hourly Rate Calculator

Calculate the hourly rate you need to charge to achieve your desired take-home income after taxes, expenses, and non-billable time.

Track your weekly billable bandwidth with HoursCalc, plan focus blocks in GoalFlow, and cement healthier work routines with HabitForge so the rate you set here actually sticks in practice.

Your Goals & Details

$

What you want to take home after all taxes and expenses

Realistically: 20-30 hours/week (not 40!)

Account for vacation, holidays, sick time (typical: 48 weeks)

$

Software, equipment, insurance, home office, etc.

%

For retirement, emergency fund, business growth (typical: 10-20%)

Your Required Hourly Rate

$95
per hour
Annual billable hours:1,440 hours
Gross revenue needed:$135,989

Income Breakdown

Gross Revenue (@ $95/hr)$135,989
- Business Expenses-$10,000
- Self-Employment Tax (15.3%)-$17,802
- Federal Income Tax-$12,881
- Profit Margin / Savings (15%)-$20,398
= Your Take-Home$74,908
Effective tax rate:22.56%

Reality Check

At 30 hours/week:

• Monthly billable hours: 120

• Monthly gross revenue: $11,332

• Monthly take-home: $6,242

Remember: Non-billable time (marketing, admin, invoicing) means you'll work more hours than you bill!

Convert to Project-Based Rate

How long will this project take?

Suggested Project Rate:
$3,800
(40 hours × $95/hour)

Pro Tip: For project-based pricing, consider adding a 10-20% buffer for scope creep and revisions. Your rate would be $4,370 with a 15% buffer.

What If I Charge Different Rates?

-20%
$76/hr
Annual gross:$108,791
Your take-home:$60,435
-$14,473 less per year
Recommended Rate
$95/hr
Annual gross:$135,989
Your take-home:$75,350
+20%
$114/hr
Annual gross:$163,187
Your take-home:$90,265
+$15,357 more per year

Factors That Increase Your Rate

  • +Specialized skills or niche expertise
  • +Years of experience and proven track record
  • +Working with enterprise clients vs. small businesses
  • +High-value outcomes (revenue generation, cost savings)
  • +Tight deadlines or rush work

Common Pricing Mistakes

  • Forgetting to account for non-billable time
  • Not including taxes in your rate calculation
  • Underestimating business expenses
  • Not leaving room for savings and profit
  • Comparing your rate to W-2 hourly equivalent

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Disclaimer

This calculator provides estimates for educational purposes only. Your actual required rate may vary based on state taxes, additional deductions, client payment terms, and other factors. Consider this a starting point for setting your rates, not financial advice.