Freelance Rate Calculator
Determine your ideal freelance hourly rate by factoring in expenses, taxes, desired salary, and billable hours.
Reviewed by Sahil, Senior Finance & Tax Editor
Reviewed by Sahil, Senior Finance & Tax Editor
Formula
Hourly Rate = Desired Income / ((1 - Expense%) × Billable Hours × Working Weeks)
Freelancers must account for non-billable time (admin, marketing, vacation), taxes (~30%), healthcare, and business expenses. Multiply employee salary by 1.5-2× for equivalent freelance rate.
Worked Examples
Example 1: $80K goal
Problem:$80K desired, 30 billable hrs/wk, 4 weeks off, 25% expenses
Solution:Gross = $80K/0.75 = $106,667. Hours = 30×48 = 1,440. Rate = $74.07/hr
Result:$74.07/hr
Reviewed by Sahil, Senior Finance & Tax Editor · Editorial policy