Realistic hours charged to clients (not admin time).
Vacation, sick days, and holidays.
Combined income and self-employment tax.
Minimum Hourly Rate$0.00
Gross Annual Revenue Needed$0.00
Total Billable Hours / Year0
Why You Need a Freelance Rate Calculator
One of the most common mistakes new freelancers make is simply taking their previous full-time hourly wage and adding a small markup. This approach often leads to financial struggle because it ignores the hidden costs of running a business. Unlike traditional employment, freelancers must cover their own taxes, health insurance, retirement contributions, and unpaid administrative time.
How This Calculator Works
This tool uses a "Reverse Engineering" method to determine your rate based on your lifestyle goals and business realities:
Net Income vs. Gross Revenue: We start with what you want to put in your pocket (Net Income), then factor in taxes and expenses to find the total revenue you need to generate.
The Billable Hours Trap: A standard 40-hour work week implies 2,080 hours a year. However, freelancers typically only spend 50-60% of their time on billable client work. The rest is spent on marketing, accounting, and pitching. This calculator adjusts for your realistic billable capacity.
Time Off: Paid Time Off (PTO) doesn't exist for freelancers. If you don't account for vacation and sick days in your hourly rate, you are effectively paying to take a break.
Factors Affecting Your Rate
While the number generated above is your math-based minimum, your market value may be higher based on:
Niche Expertise: Specialists can charge 2x-5x more than generalists.
Urgency: Rush jobs should command a 25-50% surcharge.
Value-Based Pricing: If your work generates $100k for a client, charging $100/hr is irrelevant; you should price based on the return on investment (ROI) you provide.
Use this result as a baseline floor. Never quote below this number if you want to maintain your target standard of living.
function validateInput(el) {
if (el.value < 0) el.value = 0;
}
function calculateRate() {
// 1. Get Inputs
var desiredNet = parseFloat(document.getElementById('fl-desired-income').value);
var expenses = parseFloat(document.getElementById('fl-expenses').value);
var weeklyHours = parseFloat(document.getElementById('fl-hours').value);
var weeksOff = parseFloat(document.getElementById('fl-weeks-off').value);
var taxRate = parseFloat(document.getElementById('fl-tax-rate').value);
// 2. Validation
if (isNaN(desiredNet) || isNaN(expenses) || isNaN(weeklyHours) || isNaN(weeksOff) || isNaN(taxRate)) {
alert("Please fill in all fields with valid numbers.");
return;
}
if (weeklyHours = 52) {
alert("Weeks off cannot equal or exceed 52 weeks.");
return;
}
if (taxRate >= 100) {
alert("Tax rate cannot be 100% or more.");
return;
}
// 3. Logic
// Calculate pre-tax income needed to hit the net target
// Formula: TaxableIncome = Net / (1 – TaxRate)
var taxFactor = 1 – (taxRate / 100);
var incomeNeededPreTax = desiredNet / taxFactor;
// Total Gross Revenue = Income Needed (Pre-Tax) + Business Expenses
// Note: We treat expenses as separate cash flow requirements.
// In reality, expenses reduce taxable income, but you still need to earn enough cash to pay them.
// Correct Cash Flow Logic: Revenue = (Net + Expenses*(1-Tax?)) NO.
// Simplified Solopreneur Logic:
// Revenue – Expenses = Taxable Amount
// Taxable Amount – Taxes = Net Income
// Therefore: (Revenue – Expenses) * (1 – TaxRate) = Net Income
// Revenue – Expenses = Net Income / (1 – TaxRate)
// Revenue = (Net Income / (1 – TaxRate)) + Expenses
var grossRevenue = (desiredNet / taxFactor) + expenses;
// Calculate Total Billable Hours
var workingWeeks = 52 – weeksOff;
var totalBillableHours = workingWeeks * weeklyHours;
// Calculate Hourly Rate
var hourlyRate = grossRevenue / totalBillableHours;
// 4. Output Results
var resultDiv = document.getElementById('fl-results');
resultDiv.style.display = "block";
document.getElementById('fl-final-rate').innerHTML = "$" + hourlyRate.toFixed(2);
document.getElementById('fl-gross-revenue').innerHTML = "$" + grossRevenue.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('fl-total-hours').innerHTML = Math.round(totalBillableHours);
// Scroll to results
resultDiv.scrollIntoView({behavior: 'smooth'});
}