Calculator · Freelance Rates
Freelance Rate Calculator: What Should I Charge per Hour?
Work out the hourly rate that covers your income goal, time off, business expenses and the tax rate you enter.
How it works
Hourly rate = (Income ÷ (1 − Tax rate) + Expenses) ÷ Billable hours per year
Start from the income you want to keep after tax. Dividing it by (1 − your tax rate) gives the profit you need before tax; business expenses are added on top, and the total is spread over the hours you can bill in a year — billable hours per week times the weeks you work. With a $72,000 after-tax goal, a 20% tax rate, $12,000 of expenses and 30 billable hours a week over 50 weeks: $72,000 ÷ 0.8 + $12,000 = $102,000, divided by 1,500 hours = $68 an hour.
| Rate | Amount |
|---|---|
| Hour | $68 |
| Day (8 hours) | $544 |
| Project (40 hours) | $2,720 |
| Year (1,500 hours) | $102,000 |
The tax rate is yours to enter: we do not know your filing situation, state or deductions, and we do not suggest a rate. Ask a qualified tax professional for a planning input appropriate to your situation; this tool does not determine tax obligations. Estimates for planning; not tax, legal or financial advice.
Frequently asked questions
Why not divide by 40 hours a week?
Because not every working hour can be billed — finding clients, quoting, invoicing and admin take time too. Enter only the hours you expect to charge for; the rate rises as that number falls.
Are taxes calculated on the expenses too?
No. The calculator treats your tax rate as a share of profit, after expenses, under this simplified model. That assumption is not a statement about the tax treatment of any expense; it is a planning calculation.
Why is the rate rounded up?
Rounding down by even a few cents leaves you short across a full year of hours, so the rate goes up to the next whole dollar.
Related calculators & guides
- How to Set Your Freelance Rate
- Billable Utilization: Choose the Right Denominator
- Effective vs Quoted Hourly Rate
- Annual Revenue from Billable Hours
- Price for Nonbillable Time and Overhead
- Price Service Capacity Around Planned Time Off
- Price a Retainer for Reserved Capacity
- Set a Minimum Booking Fee from Job Economics
- Calculate a Rush Project Premium
- Rate Increases and Client Retention Scenarios
- Utilization vs Realization for Service Revenue
- Billable Hours Calculator
- Effective Hourly Rate Calculator
- Billable Capacity and Revenue Table
- Freelance Pricing and Project Workbook
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