About the Freelance Rate Calculator
New freelancers often undercharge by dividing a salary by 2,080 hours — forgetting that only part of the week is billable and that taxes, benefits, and downtime come out of every dollar. This calculator works backward from your desired take-home income to a sustainable rate.
How it’s calculated
Required revenue = (target take-home ÷ (1 − tax rate)) + business expenses. Hourly rate = required revenue ÷ (billable hours per week × weeks worked).
Example calculation
To take home $80,000 after $8,000 of expenses and 25% taxes, billing 25 hours a week for 48 weeks, you'd charge about $96 an hour.
Frequently asked questions
Why is the rate so much higher than a salary?
Because you only bill a fraction of your hours and must self-fund taxes, benefits, tools, and time off. A rate that looks high still nets a modest take-home.
Should I charge hourly or per project?
Per-project pricing based on value often earns more than hourly, but this rate gives you the floor you need to hit your income goal — use it as a baseline.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.