Tax Amount Calculator

Freelance Hourly Rate Calculator

Calculate exactly what you need to charge to meet your financial goals.

Your Calculation Results

Required Hourly Rate:

$0.00

Daily Rate (8h day):

$0.00

Annual Gross Revenue:

$0.00

Monthly Gross Revenue:

$0.00

How to Use the Freelance Hourly Rate Calculator

Setting your freelance rate is one of the most critical steps in building a sustainable business. Unlike a traditional salary, your freelance rate must cover your taxes, health insurance, software subscriptions, and "unbillable" time (like marketing and bookkeeping).

Understanding the Inputs

  • Desired Monthly Net Income: This is the "take-home" pay you want in your personal bank account after all business expenses and taxes are paid.
  • Monthly Business Expenses: Include your coworking space, software (Adobe, Zoom, Slack), hardware upgrades, insurance, and professional fees.
  • Billable Hours per Week: Be realistic. If you work 40 hours a week, you might only spend 25 hours on client work. The rest is administration and sales.
  • Tax Percentage: Depending on your location, freelancers should typically set aside 20% to 35% for income and self-employment taxes.

The Math Behind the Calculation

The formula used by this calculator ensures your gross revenue covers everything:

Monthly Gross Needed = (Net Income + Expenses) / (1 – (Tax Rate / 100))
Hourly Rate = Monthly Gross Needed / (Billable Hours Per Week * 4.33)

Example Scenario

If you want to take home $5,000 a month, have $500 in expenses, and expect to pay 25% in taxes, you actually need a gross monthly income of $7,333.33. If you bill 20 hours per week (86.6 hours per month), your minimum hourly rate should be $84.68.

function calculateFreelanceRate() { var desiredIncome = parseFloat(document.getElementById("desiredIncome").value); var monthlyExpenses = parseFloat(document.getElementById("monthlyExpenses").value); var billableHours = parseFloat(document.getElementById("billableHours").value); var taxPercentage = parseFloat(document.getElementById("taxPercentage").value); // Validation if (isNaN(desiredIncome) || isNaN(monthlyExpenses) || isNaN(billableHours) || isNaN(taxPercentage)) { alert("Please enter valid numbers in all fields."); return; } if (billableHours = 100) { alert("Please enter valid hours (greater than 0) and tax rate (less than 100)."); return; } // Calculation Logic // 1. Calculate how much gross revenue is needed before tax to result in the desired net + expenses // Formula: Net = Gross * (1 – TaxRate) -> Gross = Net / (1 – TaxRate) var totalMonthlyNeeds = desiredIncome + monthlyExpenses; var monthlyGrossNeeded = totalMonthlyNeeds / (1 – (taxPercentage / 100)); // 2. Calculate total billable hours per month (approx 4.33 weeks per month) var monthlyHours = billableHours * 4.333; // 3. Final Hourly Rate var hourlyRate = monthlyGrossNeeded / monthlyHours; // 4. Day Rate (assuming 8 hour billable day based on that hourly rate) var dayRate = hourlyRate * 8; // 5. Annual Gross var annualGross = monthlyGrossNeeded * 12; // Display Results document.getElementById("resultsArea").style.display = "block"; document.getElementById("hourlyResult").innerHTML = "$" + hourlyRate.toFixed(2); document.getElementById("dailyResult").innerHTML = "$" + dayRate.toFixed(2); document.getElementById("annualResult").innerHTML = "$" + annualGross.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("monthlyGrossResult").innerHTML = "$" + monthlyGrossNeeded.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); // Scroll to results document.getElementById("resultsArea").scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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