Calculate exactly what you need to charge to hit your income goals.
The amount you want to take home after taxes and expenses.
Software, hardware, insurance, coworking space, etc.
Self-employment tax estimate (usually 25-30%).
Hours actually paid by clients (exclude admin/marketing time).
Vacation, sick days, and holidays.
Please enter valid positive numbers for all fields.
Gross Revenue Needed:–
Total Billable Hours/Year:–
Minimum Hourly Rate:–
Day Rate (8 hrs):–
function calculateFreelanceRate() {
// 1. Get input values
var targetNetStr = document.getElementById('target-income').value;
var expensesStr = document.getElementById('business-expenses').value;
var taxRateStr = document.getElementById('tax-rate').value;
var weeklyHoursStr = document.getElementById('billable-hours').value;
var weeksOffStr = document.getElementById('weeks-off').value;
var errorMsg = document.getElementById('input-error');
var resultsArea = document.getElementById('results-area');
// 2. Parse values
var targetNet = parseFloat(targetNetStr);
var expenses = parseFloat(expensesStr);
var taxRate = parseFloat(taxRateStr);
var weeklyHours = parseFloat(weeklyHoursStr);
var weeksOff = parseFloat(weeksOffStr);
// 3. Validation
if (isNaN(targetNet) || isNaN(expenses) || isNaN(taxRate) || isNaN(weeklyHours) || isNaN(weeksOff)) {
errorMsg.style.display = 'block';
resultsArea.style.display = 'none';
return;
}
if (weeklyHours <= 0 || weeksOff = 52) {
errorMsg.innerText = "Please ensure hours are positive and weeks off is less than 52.";
errorMsg.style.display = 'block';
resultsArea.style.display = 'none';
return;
}
errorMsg.style.display = 'none';
// 4. Logic Calculation
// Step A: Calculate Gross Income needed to cover Taxes.
// Formula: Net = Gross – (Gross * TaxRate) => Net = Gross * (1 – TaxRate)
// Therefore: Gross = Net / (1 – TaxRate)
var taxDecimal = taxRate / 100;
var grossSalaryNeeded = 0;
if (taxDecimal >= 1) {
// Edge case: 100% tax rate means infinite gross needed
grossSalaryNeeded = 0; // Handle gracefully
alert("Tax rate cannot be 100% or more.");
return;
} else {
grossSalaryNeeded = targetNet / (1.0 – taxDecimal);
}
// Step B: Add Expenses to get Total Revenue Requirement
var totalRevenueNeeded = grossSalaryNeeded + expenses;
// Step C: Calculate Total Billable Hours
var workingWeeks = 52 – weeksOff;
var totalBillableHours = workingWeeks * weeklyHours;
// Step D: Calculate Rate
var hourlyRate = 0;
if (totalBillableHours > 0) {
hourlyRate = totalRevenueNeeded / totalBillableHours;
}
var dayRate = hourlyRate * 8; // Assuming standard 8h day for day rate calculation
// 5. Update DOM
document.getElementById('gross-revenue-result').innerText = "$" + totalRevenueNeeded.toLocaleString('en-US', {maximumFractionDigits: 0});
document.getElementById('total-hours-result').innerText = totalBillableHours.toLocaleString('en-US', {maximumFractionDigits: 0}) + " hours";
document.getElementById('hourly-rate-result').innerText = "$" + hourlyRate.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('day-rate-result').innerText = "$" + dayRate.toLocaleString('en-US', {minimumFractionDigits: 2, maximumFractionDigits: 2});
// 6. Show results
resultsArea.style.display = 'block';
}
Why Use a Freelance Hourly Rate Calculator?
Setting your rates is one of the most challenging aspects of freelancing. If you price yourself too low, you risk burnout and financial instability. Price yourself too high without justification, and you may struggle to attract clients. A Freelance Hourly Rate Calculator removes the guesswork by using a "bottom-up" approach.
Instead of pulling a number out of thin air, this calculator starts with your financial goals (your desired net income) and your operational realities (expenses, taxes, and time off) to determine the exact mathematical rate required to sustain your lifestyle.
The Hidden Costs of Freelancing
Many new freelancers make the mistake of comparing their hourly rate directly to a salaried employee's wage. This is a critical error. As a freelancer, you are responsible for costs that an employer typically covers:
Self-Employment Taxes: You are responsible for both the employer and employee portion of Social Security and Medicare taxes.
Unpaid Time Off: You do not get paid for sick days, holidays, or vacations. You must earn enough in your working weeks to cover these gaps.
Non-Billable Hours: You cannot bill 40 hours a week. A significant portion of your time goes to marketing, invoicing, administration, and learning—none of which generates direct revenue.
Overhead: Health insurance, software subscriptions, hardware upgrades, and office space are all out-of-pocket expenses.
How to Calculate Your Rate Manually
If you want to understand the math behind the tool above, here is the formula used for determining your minimum viable rate:
1. Determine Total Revenue Needed: (Target Net Income / (1 – Tax Rate)) + Annual Expenses
2. Determine Total Billable Hours: (52 Weeks – Weeks Off) × Billable Hours Per Week
3. Calculate Rate: Total Revenue Needed / Total Billable Hours
Optimizing Your Billable Hours
One of the most important inputs in this calculator is "Billable Hours Per Week." While you might work 40+ hours, it is rare to bill all of them. A healthy utilization rate for a freelancer is often between 60% and 75%. If you try to bill 40 hours a week, you will likely work 55+ hours including admin time. Be realistic with this input to ensure your calculated rate prevents burnout.