Freelance Rate Calculator
Find the exact hourly rate you need to charge to match your target salary — after self-employment tax, health insurance, vacation, and business expenses.
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The annual net income you want to end up with
Hours per week you actually bill (not total working hours)
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Standard US rate is 15.3%
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$
401k match, dental, vision, PTO value, etc.
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Software, equipment, coworking, professional fees
Minimum Hourly Rate
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Break-even rate
Recommended Rate
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Minimum + 20% buffer
Required Monthly Revenue
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To hit your target
Billable Hours / Year
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Working weeks × hrs/week
Cost Breakdown (Annual)
Disclaimer: These results are estimates for informational and educational purposes only. They do not constitute financial, tax, or business advice. Tax rates and actual business costs vary. Consult a CPA or tax professional. Full disclaimer →
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Frequently Asked Questions
Why does my freelance rate need to be so much higher than my salary?
As a freelancer, you pay both the employee and employer portions of Social Security and Medicare taxes (15.3% combined). You also pay for your own health insurance, receive no paid vacation, and must cover all business expenses. An employer normally covers these on top of your salary — as a freelancer, your rate has to.
What is self-employment tax?
Self-employment tax is 15.3% of net self-employment income — 12.4% for Social Security and 2.9% for Medicare. As a W2 employee, your employer pays half (7.65%). As a freelancer, you pay both halves, though you can deduct half of SE tax on your federal income tax return.
Should I add a buffer to my minimum rate?
Yes. The recommended rate adds a 20% buffer above the minimum. This covers periods of low utilization (not every week is fully booked), client negotiations, scope creep, and the value of your expertise. Many experienced freelancers charge 30–50% above their true minimum, especially once they have demand.
How many billable hours should I realistically plan for?
A full-time employee works ~2,080 hours/year. As a freelancer, subtract vacation time, then expect 20–30% of remaining time to be non-billable (admin, sales, networking, learning). Many freelancers effectively bill 1,000–1,400 hours per year. Enter your realistic billable hours per week above — 25–30 is a solid estimate for most freelancers.