Freelance Hourly Rate Calculator
Gross Revenue Goal (Annual):
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Total Billable Hours (Annual):
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Minimum Hourly Rate:
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Why Use a Freelance Rate Calculator?
Setting the right price is one of the hardest challenges for new and experienced freelancers alike. Unlike a salaried employee, your hourly rate needs to cover not just your take-home pay, but also your taxes, business expenses, health insurance, and unpaid time spent on administrative tasks.
This calculator works backward from your desired net income (what you put in your pocket) to determine exactly what you need to charge clients to maintain your lifestyle and run a profitable business.
How the Calculation Works
To determine your minimum viable hourly rate, this tool considers three critical factors:
- Overhead & Taxes: Freelancers pay self-employment tax and business costs (software, hardware, internet) that employers usually cover. If your tax rate is 25%, you need to earn roughly 33% more just to break even.
- Billable vs. Non-Billable Hours: You might work 40 hours a week, but you likely can't bill for all of them. Time spent invoicing, marketing, and emailing is "unpaid." A realistic billable day for many creatives is 4-6 hours, not 8.
- Time Off: Freelancers don't get paid vacation. To take 4 weeks off a year, your working weeks must generate enough revenue to cover the downtime.
Tips for Increasing Your Rate
If the calculated rate looks higher than your current rate, don't panic. This is your "break-even" business rate. To bridge the gap, consider:
- Specializing: Niche experts (e.g., "SaaS copywriter" vs "General writer") can command higher fees.
- Value-Based Pricing: Instead of billing by the hour, quote a flat fee based on the value the project brings to the client.
- Reducing Overhead: Audit your monthly subscriptions and cut unnecessary tools to lower the gross revenue needed.
Remember, this calculator provides a minimum floor. Always aim to charge based on the value you deliver, not just the hours you work.