1. Income Goal
2. Work Schedule
Most freelancers bill 50-70% of working hours. The rest is admin, marketing, and breaks.
3. Business Costs
Internet, software, equipment, taxes set aside (typically 25-30% of income)
Upwork avg 12%, Fiverr 20%, zero-fee platforms 0%
Your minimum hourly rate
Charge less than this and you won't reach your goal.
Daily rate
$626.78
Weekly rate
$2,037.04
Monthly billable hours
104 hrs
Annual gross needed
$97,777.78
Project Minimums
Small project
~5 hours
Medium project
~20 hours
Large project
~80 hours
What does the Free Freelance Hourly Rate Calculator do?
Our Free Freelance Rate Calculator helps you reverse-engineer your minimum hourly or project rate based on your personal income goals, expenses, and billable hours.
Who is this for?
This tool is for freelancers and consultants who are transitioning from a 9-to-5 job and don't know how to price their services profitably.
How to use it
Input your desired annual salary, your monthly business expenses, and the number of hours you actually want to work. The calculator provides your target rate.
Common Use Cases
- Determining your baseline hourly rate to quit your full-time job
- Calculating how much to charge for a monthly retainer
- Factoring in non-billable hours (marketing, admin) into your pricing
- Adjusting your rates to account for self-employment taxes and health insurance
Frequently Asked Questions
Why is my calculated freelance rate higher than my employee hourly rate?
As a freelancer, you must cover your own taxes, health insurance, software, and non-billable time. Your freelance rate usually needs to be 2-3x your employee rate to make the same take-home pay.
What are billable vs non-billable hours?
Billable hours are the exact hours you are paid for by a client. Non-billable hours are time spent on admin, marketing, pitching, and invoicing. You only get paid for billable hours.
Should I charge hourly or by project?
Project-based or value-based pricing is usually more profitable as you get faster at your job. However, calculating your baseline hourly rate is crucial to ensure your project quotes are profitable.
How much should I set aside for taxes?
In the US, freelancers typically need to set aside 25% to 30% of their gross income to cover self-employment and income taxes.
How it works
Enter your income goals and expenses to find out exactly what you should be charging per hour and per project.
Tips for best results
- •Most freelancers only bill 50-70% of their working hours. The rest goes to admin and marketing.
- •Don't forget to account for platform fees and taxes, which can take up to 40% of your gross rate.