Freelance Rate Calculator
Calculate your ideal hourly rate, project pricing, and annual income goal — free and instant.
Monthly Expenses & Overhead
These costs are factored into your minimum viable rate.
Monthly total: $3,150
How to Calculate Your Freelance Rate
Setting the right freelance rate is one of the most critical decisions you'll make as an independent professional. The formula used here: (Annual Expenses + Desired Income + Tax Reserve + Profit Buffer) ÷ Total Billable Hours.
Why most freelancers undercharge
- ⚠️Forgetting non-billable hours — admin, marketing, and client calls aren't free
- 💸Missing self-employment taxes (typically 15.3% in the US on top of income tax)
- 🛠️Ignoring overhead — software, equipment, insurance, and professional development
- 📉No buffer for slow months — a 15–20% profit buffer is standard practice
Industry benchmarks (2026)
Frequently asked
What is a billable hour? Any hour you can directly charge a client for. Most freelancers can only bill 60–70% of their working hours — the rest goes to admin, invoicing, and business development.
Should I charge hourly or by project? Use this calculator to find your hourly baseline, then multiply by estimated hours to set project rates. Hourly protects you from scope creep; project rates reward efficiency.
How often should I raise my rates? Review at least once per year to account for inflation, increased experience, and rising overhead costs.