Freelance Rate Calculator

Calculate freelance hourly and day rates from take-home income, taxes, expenses, and realistic billable capacity.

Inputs

Annual income you want after setting aside taxes.

Percentage to reserve for income and self-employment taxes.

Software, insurance, subcontractors, admin, tools, and sales.

Weeks available after time off, holidays, and downtime.

Hours you can realistically invoice each working week.

How it works

  1. 1. Set take-home target

    Start with the income you want to keep after taxes.

  2. 2. Add tax and expenses

    Gross up income for taxes and add operating costs.

  3. 3. Price against capacity

    Divide required revenue by realistic billable hours.

Frequently asked questions

How is freelance hourly rate calculated?

The calculator grosses up your take-home income for taxes, adds annual expenses, then divides total revenue needed by annual billable hours.

Why include taxes separately?

Freelancers often need to reserve money for income and self-employment taxes. Including taxes helps avoid setting a rate that looks profitable but underfunds tax obligations.

Why calculate a day rate too?

Many freelance projects are easier to quote by day or fixed scope. The day rate gives you a quick baseline for those conversations.