Freelance Hourly Rate Calculator
Updated for 2026 · All math runs privately in your browser
Want a $70,000 salary working for yourself? You can't charge $33.65/hour — taxes, expenses and downtime say otherwise. Work backwards to the rate you actually need.
Your numbers
What you want to pay yourself, before taxes.
Hours clients actually pay for — not admin, marketing, or proposals. 20–30 is typical.
48 = 4 weeks off. Freelancers don't get paid vacation.
Software, hardware, insurance, accounting, payment fees.
US freelancers: 25–35% combined is a safe planning figure.
Margin above break-even for slow months and growth. 10–20% is healthy.
Charge at least this
- Billable hours per year—
- Salary portion per hour—
- Expenses per hour—
- After tax gross-up—
- + profit buffer—
- Annual revenue at this rate—
- Naive rate (salary ÷ 2080)—
Estimate for planning — not tax advice. Tax situations vary; talk to an accountant for your real effective rate.
How to use this calculator
- Enter the salary you want to pay yourself for the year.
- Enter billable hours — only hours clients pay for (try 25, not 40).
- Add business expenses and your tax rate.
- Add a profit buffer so one slow month doesn't sink you.
How the math works
Billable hours/year = billable hours per week × weeks worked. At 25 × 48 = 1,200 hours — barely half of a 2,080-hour job.
Base rate = (target salary + annual expenses) ÷ billable hours.
Tax gross-up = base rate ÷ (1 − tax rate). At 30% tax, every $1 you keep requires charging $1.43.
Final rate = grossed-up rate × (1 + profit margin). This is the minimum sustainable price for your time.
Frequently asked questions
Start with your target annual salary, divide by your yearly billable hours, then add business expenses per hour, gross up for taxes, and add a profit buffer. Formula: rate = ((salary + expenses) ÷ billable hours) ÷ (1 − tax rate) × (1 + profit margin).
Most freelancers bill 20–30 hours per week even when working 40+. Admin, marketing, and proposals are not billable. Be honest here — underestimating non-billable time is the #1 reason freelancers undercharge.
Software subscriptions, hardware, home office costs, insurance, accounting, payment processing fees, and a buffer for unpaid invoices. Total them annually and the calculator spreads them across your billable hours.
In the US, set aside 25–30% of profit for federal income tax plus 15.3% self-employment tax (though half of SE tax is deductible). A combined effective rate of 25–35% is a safe planning figure; adjust for your state.
Roughly 2–3× is common because your old employer paid for benefits, taxes, downtime, and equipment that you now cover yourself. Run your real numbers above instead of guessing — the calculator shows exactly where each dollar goes.
A profit buffer (typically 10–20%) is margin above breaking even. It covers slow months, late payments, and lets the business actually grow instead of just surviving. Without it, one bad month wipes you out.